Earnings Analysis for SNDR
Revenue Analysis
Total and Operating Revenue: SNDR’s revenue showed variability over the last few reporting periods. The total revenue increased from $1.342 billion in Q2 2023 to $1.379 billion in Q4 2023, before slightly decreasing to $1.319 billion in Q1 2024. Operating revenue followed a similar pattern, reflecting the company’s primary business operations.
Gross Profit Margins: Gross profit margin reflects the cost-effectiveness of the company’s production. Margins slightly fluctuated, peaking at $175.1 million in Q1 2023. The gross profit in the most recent quarter, however, stands at $91.1 million indicating a potential increase in cost or pricing pressures.
Cost Management
Cost of Revenue: This increased from approximately $1.188 billion in Q2 2023 to around $1.251 billion in Q1 2024, suggesting higher costs associated with increased revenue scales or potentially inflated input prices.
Operating Expense: SNDR’s operating expenses remained relatively stable over the analyzed periods, ranging between approximately $54.8 million to $74 million.
Total Expenses: These figures showcase escalating expenses in line with revenue and cost of revenue trajectories, highlighting the management’s ability to control costs amidst revenue scale.
Profitability Analysis
EBITDA: EBITDA hovered between $131.5 million in Q1 2024 and $225.5 million in Q1 2023. It represents operational profitability before accounting for taxes and interest, demonstrating significant variances.
Operating Income: Operating income increased to $46.7 million in Q3 2023 but dropped subsequently, denoting potential volatility in operational efficiency.
Pretax Income: Pretax income has varied, showcasing highs in Q1 2023 at $129.3 million, yet noted a decrease to $24.7 million by Q1 2024.
Net Income: Net income shows a drop from a peak of $98 million in Q1 2023 to $18.5 million by Q1 2024, indicating tightening net margins.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses are noteworthy as they sustained around $90 million to $102.8 million, which impacts the cash flow and earnings quality.
Interest Expense: Interest expenses slightly increased over the periods, potentially influencing the company’s finance costs and influencing net profitability.
Taxation
Tax Rate: The effective tax rate showed significant fluctuations, observed as low as 0.0036 in Q4 2023, reflecting various tax liabilities and potential adjustments in fiscal policies impacting the company.
Tax Provision: Tax provisions varied notably, peaking at $31.3 million in Q1 2023 and dropping drastically to lower values in subsequent quarters. This reduces the apparent fiscal burden and affects net income calculations.
Tax Effect of Unusual Items: There were no unusual tax effects recorded, suggesting straightforward taxation circumstances.
Shareholder Metrics
Diluted and Basic EPS: Earnings Per Share (EPS) experienced fluctuations. The diluted EPS peaked at 0.55 in Q1 2023 and saw a significant decrease to 0.1 by Q1 2024. Such volatility indicates varying profitability affecting shareholder value during these periods.
Average Shares: The company maintained a fairly constant count of issued shares, implying stable equity dilution levels.
Net Income Available to Common Stockholders: This metric coincides directly with reported net income, providing a straightforward view of earnings available for distribution to common stockholders.
Conclusion
SNDR’s financial analysis over the past three years showcases a company experiencing both revenue growth and challenges in managing expenses and profitability. The variability in earnings, alongside periodic increases in cost and operational deliverables, suggests areas for strategic improvement. Further attention to cost control, operational efficiency, and strategic financial planning will be crucial to enhancing shareholder value and stability in profitability.