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Sep 30, 2023
Schneider National Q3 2023 Earnings Report
Schneider National's Q3 2023 results experienced declines in revenue and earnings due to price pressures, fuel costs, bad debt, and lower equipment gains, but were augmented by platform diversity and strategic growth objectives.
Key Takeaways
Schneider National reported a decrease in operating revenues to $1.352 billion and a net income of $35.6 million for Q3 2023, compared to $1.675.3 billion and $125.8 million, respectively, for the same period in 2022. The results reflect challenges from a prolonged freight recession, price pressures, and increased costs, although diversity and strategic advancements partially offset these impacts.
Operating revenues decreased by 19% year-over-year to $1.352 billion.
Net income declined by 72% year-over-year to $35.6 million.
Diluted earnings per share decreased by 71% year-over-year to $0.20.
The company updated its full-year adjusted diluted earnings per share guidance to $1.40 - $1.45.
Schneider National
Schneider National
Schneider National Revenue by Segment
Revenue by Segment
Truckload Revenue
CapyFin.comIntermodal Revenue
CapyFin.comLogistics Revenue
CapyFin.comOther Revenue
CapyFin.comFuel Surcharge Revenue
CapyFin.com Forward Guidance
The company's second half 2023 earnings are challenged by ongoing pricing pressures, muted seasonality, and transitory cost items. The company is focused on margin restoration and positioning the Enterprise for improving market conditions expected in the first half of 2024. Updated guidance for full year 2023 adjusted diluted EPS is $1.40 - $1.45 and net capital expenditures is a range of $550 - $575 million, with a full year effective tax rate estimated at 24.5%.
Positive Outlook
- Proactive execution of pricing strategies.
- Positioning the Enterprise for improving market conditions.
- Focus on margin restoration.
- Market conditions expected to improve in the first half of 2024.
- Net capital expenditures is a range of $550 - $575 million
Challenges Ahead
- Ongoing pricing pressures.
- Muted seasonality.
- Transitory cost items.
- Second half 2023 earnings are challenged.
- Full year effective tax rate estimated at 24.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income