Schneider National Misses Q1 Expectations, Cuts 2024 Outlook
Schneider National's first-quarter earnings fell short of expectations, prompting the company to reduce its full-year outlook by nearly 25%. Despite acknowledging some positive trends, the company remains cautious about a market turnaround.
One notable development was the first positive truckload contract price renewals in six quarters. Prices increased by a low-single-digit percentage for contracts renewed during the period. However, the company acknowledged losing some market share to competitors offering lower rates.
Schneider's adjusted earnings per share (EPS) came in at 11 cents, missing the consensus estimate by 1 cent and falling 44 cents year-over-year. Lower gains on equipment sales and equity investments contributed to the decline.
The company lowered its full-year EPS guidance to a range of 85 cents to $1, citing the persistent downcycle in the market. CFO Darrell Campbell expressed optimism about improving conditions later in the year but acknowledged a tempered outlook on the timing of the recovery.
Truckload revenue remained flat year-over-year, with a 4% increase in truck count offset by a decline in revenue per truck per week. Dedicated revenue grew 13% due to an acquisition, while the one-way segment saw a 16% revenue decline.
Intermodal revenue fell 7% year-over-year, with flat load count and a decline in revenue per load. Logistics revenue dropped 15%, driven by a decline in brokerage loads and likely a similar decline in revenue per load.
Despite the challenging market conditions, Schneider's stock price rose 2.3% in midday trading. The company's cautious outlook reflects the ongoing uncertainty in the trucking industry, but it also highlights its efforts to adapt and improve its performance in a difficult environment.