Wisconsin-based Schneider National (SNDR) provides transport and logistics solutions, serving customers in North America. The company operates three business segments: Truckload, Intermodal, and Logistics. Schneider invested in self-driving truck company TuSimple (TSP), which went public in April 2021.
Let’s take a look at the company’s latest financial performance and newly added risk factor. (See Schneider National stock charts on TipRanks).
Q2 Financial Results and 2021 Outlook
Revenue increased 32% year-over-year to $1.36 billion in Q2 2021 and exceeded the consensus estimate of $1.25 billion. Truckload revenue increased 5% year-over-year to $475.2 million. Intermodal revenue rose 25% year-over-year to $274 million. Logistic revenue jumped 87% year-over-year to $430.7 million.
Adjusted EPS of $0.60 increased from $0.26 in the same quarter last year and beat the consensus estimate of $0.41. The TuSimple investment contributed $0.08 to Schneider’s Q2 EPS. Schneider ended Q2 with $490.5 million in cash and $207.1 million in long-term debt.
For 2021 full-year, Schneider raised its adjusted EPS forecast to a range of $1.85 to $1.95 from $1.60 to 1.70 previously. The consensus estimate calls for EPS of $1.68.
Schneider expects to spend between $325 million to $350 million in capital expenditures during the year, lower than the previous estimate of $375 million to $425 million.
Risk Factors
The new TipRanks Risk Factors tool reveals 29 risk factors for Schneider. Since Q4 2020, the company has updated its risk profile with one new risk factor under the Finance and Corporate category.
Schneider says that the market value of its investment in TuSimple is subject to volatility. It cautions investors that fluctuations in the value of the investment could result in massive losses. That could, in turn, have a material adverse impact on the results of its operations and financial condition.
The majority of Schneider’s risk factors fall under the Finance and Corporate category, with 31% of the total risks. That is below the sector average of 39%. Schneider’s shares have gained about 13% since the beginning of 2021.
Analysts’ Take
Cowen analyst Jason Seidl recently upgraded Schneider National stock to a Buy from Hold and raised the price target to $32 from $30. Seidl’s new price target suggests 36.69% upside potential.
Consensus among analysts is a Hold based on 4 Buys, 4 Holds, and 2 Sells. The average Schneider National price target of $26.67 implies 13.93% upside potential to current levels.
Related News:
Arcutis Enhances Patent Portfolio; Street Says Buy
GM’s BrightDrop Develops EV600 in Record Time and Unveils EV410
CyrusOne Explores Sale Options Following Investor Pressure — Report
