Schneider National, Inc. (SNDR) disappointed investors on Wednesday with its third-quarter financial results, reporting weaker-than-expected earnings and revenue. The company’s earnings per share came in at 18 cents, missing the analyst consensus estimate of 23 cents. Revenue also fell short of expectations, hitting $1.316 billion compared to the anticipated $1.330 billion.
Despite the underwhelming performance, Schneider National’s stock climbed by 4.7% to close at $30.44 on Wednesday. This upward movement can be attributed to the company’s positive outlook on its Dedicated and Intermodal businesses. Mark Rourke, President and Chief Executive Officer of Schneider, emphasized the resilience of these segments, highlighting the robust new business pipeline in Dedicated and the margin growth achieved in Intermodal through network optimization and cost management initiatives. The company’s Logistics segment also maintained profitable operations, continuing to manage net revenue effectively and lowering costs by leveraging Schneider FreightPower® technology and automation.
Analysts responded to the earnings announcement with adjustments to their price targets for Schneider National. B of A Securities analyst Ken Hoexter upgraded Schneider National from Underperform to Buy and raised the price target from $27 to $34. Evercore ISI Group analyst Jonathan Chappell maintained Schneider National with an In-Line rating but lowered the price target from $27 to $26.
The mixed performance of Schneider National’s third-quarter results provides a glimpse into the company’s financial health and its ability to navigate the current economic landscape. While the earnings miss may raise concerns for some investors, the company’s positive outlook on its core businesses and the upward stock movement suggests potential for growth and resilience.
