Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at GXO Logistics (NYSE: GXO) and its peers.
The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics 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 6 air freight and logistics stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.
GXO Logistics (NYSE: GXO)
With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of $3.30 billion, up 15.9% year on year. This print exceeded analysts’ expectations by 6.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
GXO Logistics achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 7.4% since reporting and currently trades at $52.65.
Is now the time to buy GXO Logistics? Access our full analysis of the earnings results here, it’s free.
Best Q2: Expeditors (NYSE: EXPD)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.65 billion, up 8.7% year on year, outperforming analysts’ expectations by 9.2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Expeditors achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $120.54.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Hub Group (NASDAQ: HUBG)
Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Hub Group reported revenues of $905.6 million, down 8.2% year on year, falling short of analysts’ expectations by 1.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 6.9% since the results and currently trades at $37.42.
Read our full analysis of Hub Group’s results here.
FedEx (NYSE: FDX)
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
FedEx reported revenues of $22.22 billion, flat year on year. This print beat analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.
The stock is up 1.2% since reporting and currently trades at $232.
Read our full, actionable report on FedEx here, it’s free.
United Parcel Service (NYSE: UPS)
Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.22 billion, down 2.7% year on year. This number topped analysts’ expectations by 1.7%. It was a strong quarter as it also recorded a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ EBITDA estimates.
The stock is down 13.9% since reporting and currently trades at $87.42.
Read our full, actionable report on United Parcel Service here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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