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.

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%.

Ad Loading...

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.

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.”

Ad Loading...

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.

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.

Ad Loading...

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

Illustration of computer screen with Trimble Arc Agent screen
Fleet Managementby Deborah LockridgeAugust 14, 2026

Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork

Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.

Read More →
Photos of three men and two women with HDT Truck Fleet Innovators 2026 logo
Fleet ManagementCover Storyby Deborah LockridgeAugust 13, 2026

How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations

Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.

Read More →
Graph showing how contract rates and spot rates converged in July
Fleet Managementby StaffAugust 12, 2026

Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall

“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.

Read More →
Ad Loading...
Line graph showing container import volumes
Fleet Managementby StaffAugust 7, 2026

Import Cargo’s Early Peak Season is Winding Down

There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,

Read More →
Blue infographic with graphs illustrating cargo theft trends in the second quarter of 2026
Fleet Managementby Deborah LockridgeAugust 6, 2026

Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads

CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.

Read More →
Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Ad Loading...
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
Ad Loading...
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →