Schneider Raises Outlook as Profit Rebounds
The transportation provider lifted its full-year adjusted earnings outlook to $0.90 to $1.10 a share.
Schneider National (SNDR), the multimodal transportation and logistics provider, returned to earnings growth in the second quarter as operating income rose 30% from a year earlier, reversing declines in the previous two quarters.
The quarter marked a turn in Schneider’s trajectory. Its adjusted operating ratio improved 110 basis points to 94.5% after deteriorating in each of the prior two quarters, while adjusted EBITDA rose 8% to $180.0 million following consecutive declines.
Operating revenue increased 10% to $1.5687 billion, accelerating from flat growth in the first quarter. Revenue excluding fuel surcharges rose 4% to $1.3283 billion, reversing the first quarter’s 1% decline. Adjusted diluted earnings increased 38% to $0.29 a share after falling 25% in the prior quarter.
Truckload income from operations climbed 28% to $51.4 million even as revenue excluding fuel surcharges rose 1% to $627.6 million. Revenue per truck per week increased 5% to $4,162, accelerating from 2% growth in the first quarter, and the segment’s operating ratio improved 180 basis points to 91.8%.
Network operations drove the truckload improvement, with revenue rising to $196.6 million from $181.9 million and revenue per truck per week jumping 16% to $4,421. Dedicated revenue declined to $430.9 million as the average truck count fell. Intermodal revenue slipped 1% on shorter hauls, though operating income rose 14% and its operating ratio improved 90 basis points.
Logistics added another source of profit growth. Revenue excluding fuel surcharges increased 11% to $376.1 million as higher revenue per order offset lower brokerage volume, lifting operating income 53% to $12.1 million.
Schneider now expects full-year adjusted earnings of $0.90 to $1.10 a share, up from its previous range of $0.70 to $1.00. The company also lowered its net capital-expenditure forecast to $350 million to $400 million, reducing the midpoint by $50 million, primarily because of lower trailer spending.
Free cash flow fell $35.1 million from a year earlier as transportation-equipment purchases increased, reversing the first quarter’s improvement tied to lower equipment spending. The reduced capital plan provides a counterweight as Schneider carries the quarter’s operating gains into the second half.