Benchmark reiterated a Buy rating on Schneider National (NYSE: SNDR) and kept a $31.00 price target following the company's fourth-quarter results, despite an earnings miss that weighed on the stock. Shares were trading at $27.46, down from a prior close of $30.21, while data from InvestingPro indicates the company is modestly undervalued relative to its Fair Value assessment.
Schneider reported adjusted earnings per share of $0.13 for the quarter, below Benchmark's $0.19 estimate and the FactSet consensus of $0.20. The primary driver of the shortfall was weaker-than-expected operating income in the Truckload segment, with the Dedicated business accounting for the largest portion of the gap. InvestingPro data shows nine analysts have revised their earnings estimates downward for the coming period, reflecting heightened concern about near-term performance.
The fourth-quarter results pulled full-year EPS down to $0.63, beneath management's prior guidance of $0.70. Schneider provided 2026 EPS guidance in a range of $0.70 to $1.00, which was described as roughly 15% below analyst expectations and was cited as a contributor to notable after-hours selling pressure on the stock. The company is currently trading at a price-to-earnings ratio of 45.98, a level InvestingPro characterizes as high relative to expected near-term earnings growth.
Management attributed the weaker fourth-quarter performance to softer-than-expected market conditions that began in November, with volumes declining versus prior expectations. December brought additional pressure as shippers reduced inventories, and severe weather in the Midwest added both volume losses and cost headwinds. Company commentary noted year-end capacity tightness pushed some transactional freight into early January. While recent severe weather produced operational disruption, management said premium pricing opportunities are emerging as networks recover.
For the quarter Schneider reported revenue of $1.4 billion, slightly below the $1.45 billion analysts had anticipated, a 3.45% miss. The adjusted earnings shortfall of $0.13 versus the expected $0.20 equates to a 35% gap from consensus estimates. These metrics point to a challenging quarter across revenue and profitability measures.
The company did not announce any mergers or acquisitions in conjunction with the results, and there were no reported analyst upgrades or downgrades tied to the earnings release. The aggregate of lowered near-term guidance, analyst revisions, and weather- and volume-related operational disruptions has led investors and observers to reassess near-term expectations for the freight and logistics operator.
Context for industrials and logistics market participants
The quarter's dynamics—volume softness beginning late in the year, inventory destocking by shippers, and weather-related operating interruptions—are directly relevant to stakeholders across transportation, logistics and supply-chain-dependent sectors. Backlog conversion, capacity timing and working-capital movements are central to how these quarter-to-quarter swings translate into cash-flow outcomes for carriers and shippers alike.