Schneider National, Inc. (SNDR) Tops Q1 EPS by 5c

Schneider National, Inc. (NYSE: SNDR) reported Q1 EPS of $0.24, $0.05 better than the analyst estimate of $0.19. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.1 billion.

“Our first quarter results are a direct reflection of the integral role our portfolio of services plays, especially during difficult times, in meeting the fundamental needs of consumers,” said Mark Rourke, Chief Executive Officer and President of Schneider. “Our hearts go out to the millions of people impacted by the COVID-19 virus. The health and well-being of every Schneider associate, owner-operator and their families, our customers and the communities in which we live and operate in are our top priorities.”

“We are navigating this situation from a position of strength,” Rourke continued. “Our resilient balance sheet and ample liquidity allow us to focus our efforts on safety, execution, service, and long-term positioning of our business. Our broad and scaled portfolio of services anchored on our Quest technology platform allows for flexible redeployment of drivers and equipment to support the dynamic supply chain needs of our diverse customer base. The combination of these factors positions the Company for long-term success and value creation.”

“Of Schneider’s workforce of nearly 19,000, the vast majority cannot work from home,” Rourke stated. “These are drivers, owner-operators, shop, warehouse and driver services personnel. I am especially thankful for their commitment and dedication during this time. To the healthcare professionals, first responders, and all others on the front line fighting this virus, we are truly grateful for your efforts and service.”

Business Update and Outlook

“Our base case assumptions coming into April were that the largest impacts of the virus-driven economic disruption on our business volumes would be incurred in the second quarter, and that steady improvement would occur throughout the third and fourth quarters,” Rourke stated. “While it is unknown how this will ultimately play out, the base case assumptions have held to date. Our Truckload and Intermodal freight volumes stabilized in late April after steadily declining earlier in the month and brokerage has experienced improved net revenue.”

“In late April, Truckload volumes are down upper single-digit percentages from the prior year, and Intermodal volumes are down upper teen percentages,” Rourke continued. “In addition, while there is still much to play out, we are starting to see encouraging signs that some impacted customers and suppliers are in the process of reopening or ramping up their operations.”

“However, given that there is ongoing uncertainty regarding the timing and pace of recovery, we are suspending our full year 2020 EPS guidance,” stated Rourke. “Regarding capital expenditures, we are maintaining investments in replacement equipment, while also curtailing several discretionary projects and accelerating our technology spend. The net result is that our updated full year 2020 net capital expenditure guidance is approximately $260 million.”

For earnings history and earnings-related data on Schneider National, Inc. (SNDR) click here.

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