What Happened?
Shares of transportation company Schneider (NYSE: SNDR) fell 8.8% in the morning session after the company reported third-quarter results that missed profit expectations, even as revenue slightly topped forecasts.
The transportation and logistics firm's revenue of $1.45 billion beat analyst forecasts by 1.4%, but its adjusted earnings of $0.12 per share fell 41.3% short of the $0.20 consensus estimate. Profitability was a key concern, as the company's adjusted EBITDA of $148.9 million also missed expectations by 10.2%. Furthermore, Schneider's free cash flow margin declined significantly to 5.2% from 8.6% in the same quarter last year, suggesting weaker cash generation. The significant earnings miss and weaker cash profitability overshadowed the revenue beat, leading to negative investor sentiment.
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What Is The Market Telling Us
Schneider’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock dropped 2.3% on the news that the Trump administration announced a new 25% tariff on imported trucks. President Trump announced via his Truth Social platform that a 25% tariff will be levied on all medium and heavy-duty trucks imported into the United States, effective November 1st, 2025. This move is poised to have a significant impact on truck manufacturers, particularly those based in neighboring countries that export to the U.S. The new tariff could increase costs for foreign manufacturers, potentially altering the competitive landscape within the heavy-vehicle industry. Investors are now watching to see how this will affect supply chains, pricing, and the stock performance of both domestic and international truck makers.
Schneider is down 30.3% since the beginning of the year, and at $20.31 per share, it is trading 39.6% below its 52-week high of $33.61 from November 2024. Investors who bought $1,000 worth of Schneider’s shares 5 years ago would now be looking at an investment worth $920.63.
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