The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how ground transportation stocks fared in Q1, starting with Landstar (NASDAQ: LSTR).
The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.
The 15 ground transportation stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.8%.
Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.
Landstar (NASDAQ: LSTR)
Covering billions of miles throughout North America, Landstar (NASDAQ: LSTR) is a transportation company specializing in freight and last-mile delivery services.
Landstar reported revenues of $1.16 billion, down 1.6% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ Van Equipment revenue estimates but a miss of analysts’ EBITDA estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $142.93.
Read our full report on Landstar here, it’s free.
Best Q1: Schneider (NYSE: SNDR)
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE: SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $24.18.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Universal Logistics (NASDAQ: ULH)
Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
Universal Logistics reported revenues of $382.4 million, down 22.3% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Universal Logistics delivered the slowest revenue growth in the group. As expected, the stock is down 1.8% since the results and currently trades at $26.41.
Read our full analysis of Universal Logistics’s results here.
Avis Budget Group (NASDAQ: CAR)
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ: CAR) is a provider of car rental and mobility solutions.
Avis Budget Group reported revenues of $2.43 billion, down 4.7% year on year. This result missed analysts’ expectations by 2.9%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.
The stock is up 13.1% since reporting and currently trades at $113.50.
Read our full, actionable report on Avis Budget Group here, it’s free.
Old Dominion Freight Line (NASDAQ: ODFL)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ: ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Old Dominion Freight Line reported revenues of $1.37 billion, down 5.8% year on year. This print met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 10.4% since reporting and currently trades at $168.
Read our full, actionable report on Old Dominion Freight Line here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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