Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Earnings Watch: Schneider Profit Falls 19.8%, Covenant Reports Revised Loss

The truckload, intermodal and logistics services provider Schneider National Inc. reported its first earnings since going public last month, showing a decline in profitability, while another company has revised its earnings, pushing it into the red.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
May 11, 2017
Earnings Watch: Schneider Profit Falls 19.8%, Covenant Reports Revised Loss

 

3 min to read


The truckload, intermodal and logistics services provider Schneider National Inc. reported its first earnings since going public last month, showing a decline in profitability, while another company has revised its earnings, pushing it into the red.

Ad Loading...

Net income for Wisconsin-based Schneider totaled $22.6 million in the first three months of 2017, a decrease of 19.8% compared to first quarter 2016 while revenue increased 8.4% to $1 billion.

Ad Loading...

Earnings per share were 14 cents in the most recent quarter compared to 18 cents a year earlier. Adjusted earnings were 15 cents, 2 cents better than a consensus estimate from analysts, while revenue was also better than expectations.

CEO Chris Lofgren said the company was “pleased” with its first quarter performance.

Schneider’s truckload segment reported revenue excluding fuel surcharge of $522.1 million, an increase of 6.4% compared to first quarter 2016. Income from operations was $38.5 million; a decrease of 8.7%.

The increase in revenue was attributed to the company’s purchase of Watkins & Shepard, and Lodeso in June 2016, but was partially offset by decreased freight volume in the company’s dedicated and for-hire standard businesses.

The decline in truckload income from operations was due to “unfavorable market conditions and increased driver and equipment costs, [with] operational efficiencies resulting from effective fleet sizing partially offset the earnings decrease,” Schneider said in a statement.

Ad Loading...

Intermodal revenue excluding fuel surcharge was $181.1 million; a decrease of 2% compared to first quarter 2016, while income from operations fell 6.4% to $6.6 million; a decrease of 6.4%. This happened as intermodal volume moved up 6.2% but was offset by a 7.7% decrease in revenue per order “driven by both a soft pricing environment and increased volume in the east and local west which have shorter lengths of haul.”

Schneider’s logistics revenue, excluding fuel surcharge totaled $183.9 million; an increase of 10.3% compared to a year earlier and income from operations moved up just 0.1% to $5.2 million.

“We anticipate the market pressures of first quarter 2017 to carry into the second quarter,” said Lofgren. “However, we expect improving market conditions in the second half of 2017 driven both by an improving freight market as well as concerns surrounding the impending electronic logging device mandate.”

Lawsuit Pushes Covenant Down for a First Quarter Loss

This news came a day after the parent to truckload carrier Covenant Transport and others has revised its first quarter earnings showing it moved from a profit to a loss due to a court decision.

Covenant Transportation Group, Inc. said that the U.S. District Court for the Southern District of Ohio issued a pre-trial decision against one of its subsidiaries relating to a cargo claim incurred in 2008. CTG did not reveal which of its operations the claim was against.

Ad Loading...

The court had previously ruled in favor of the plaintiff in 2014, and the prior decision was reversed in part by the Sixth Circuit Court of Appeals and remanded for further proceedings in 2015. The company is reviewing its options regarding further appeals.

Pending the outcome of further proceedings, the company has put aside $900,000 for legal costs, which will be recorded for the first quarter, due to Securities and Exchange Commission rules, even though the court ruling took place in the current and second quarter of the year.

Covenant previously announced net income for the first quarter of $0.5 million, or $0.03 per diluted share, down nearly 87% from a year earlier. The increased reserve will result in a net loss of approximately $39,000 for the first quarter or zero earnings per share.

This change is reflected in the company’s quarterly report filed with the Securities and Exchange Commission on Wednesday. 

The ultimate amount of the claim will depend on various interest rate, time period, legal cost, and other factors, as well as the success of any appeal, according to Covenant.

More Fleet Management

Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

HDT Q&A: Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →
Illustration of computer and mobile screens with load matching software superimposed over photo of an oversize load
Fleet Managementby News/Media ReleaseApril 17, 2026

Truckstop.com Adding to Open Deck, Heavy Haul Offerings

Load matching for flatbed, lowbed, oversize and overweight loads can't be automated like basic van freight, but Truckstop.com is adding more high-tech tools to help.

Read More →
Trucker Path, Truckstop.com partnership expands.
Fleet Managementby News/Media ReleaseApril 14, 2026

Trucker Path, Truckstop.com Expand Load Access Partnership

An expanded Trucker Path and Truckstop.com integration brings more freight opportunities into the TruckLoads app while emphasizing security and network quality.

Read More →
Ad Loading...
DAT TVI March 2026.
Fleet Managementby News/Media ReleaseApril 14, 2026

Truckload Rates Hit Two-Year Highs as Diesel Costs Surge, DAT Says

Strong March freight demand combined with a spike in fuel costs pushed both spot and contract truckload rates to their highest levels in more than two years.

Read More →
Cloud computing concept background with human and robot hands concept
Fleet ManagementApril 14, 2026

The AI Conversation You Need to Have with Your TMS Provider

Everyone’s talking about AI — but is your transportation management system actually built for it?

Read More →
Sharp Transportation tractor-trailer
Fleet Managementby News/Media ReleaseApril 14, 2026

Kriska Buys Fellow Canadian Carrier Sharp Transportation Systems

Being part of KTG will allow Sharp to expand and improve its services.

Read More →
Ad Loading...
Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →
Ad Loading...
Fleet Managementby StaffApril 8, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →