As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Hertz (NASDAQ: HTZ) and its peers.
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%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
Hertz (NASDAQ: HTZ)
Started with a dozen Model T Fords, Hertz (NASDAQ: HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Hertz reported revenues of $1.81 billion, down 12.8% year on year. This print fell short of analysts’ expectations by 10.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
"Our 'Back-to-Basics Roadmap' is working," said Gil West, Chief Executive Officer of Hertz.
Hertz delivered the weakest performance against analyst estimates of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $6.98.
Read our full report on Hertz 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 a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $23.21.
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 14.4% since the results and currently trades at $23.03.
Read our full analysis of Universal Logistics’s results here.
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 result was in line with analysts’ expectations. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 6% since reporting and currently trades at $161.26.
Read our full, actionable report on Old Dominion Freight Line here, it’s free.
Heartland Express (NASDAQ: HTLD)
Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.
Heartland Express reported revenues of $219.4 million, down 18.8% year on year. This print came in 9% below analysts' expectations. It was a disappointing quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates.
The stock is up 11.6% since reporting and currently trades at $8.75.
Read our full, actionable report on Heartland Express here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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