Winners And Losers Of Q3: Heartland Express (NASDAQ:HTLD) Vs The Rest Of The Ground Transportation Stocks

March 05, 2025 at 04:03 AM EST

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Wrapping up Q3 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including Heartland Express (NASDAQ: HTLD) 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 16 ground transportation stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.3% since the latest earnings results.

Weakest Q3: 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 $259.9 million, down 11.9% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three and nine months ended September 30, 2024, continue to be hampered by a challenging freight environment. This prolonged recessionary period continues to be driven by a combination of lower freight demand and excess truck capacity in the marketplace."

Heartland Express delivered the slowest revenue growth of the whole group. The stock is down 11.8% since reporting and currently trades at $10.04.

Read our full report on Heartland Express here, it’s free.

Best Q3: XPO (NYSE: XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.1% since reporting. It currently trades at $117.11.

Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free.

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 $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 14.7% since the results and currently trades at $76.51.

Read our full analysis of Avis Budget Group’s results here.

ArcBest (NASDAQ: ARCB)

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

ArcBest reported revenues of $1.00 billion, down 8.1% year on year. This result met analysts’ expectations. It was a very strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 20.5% since reporting and currently trades at $75.

Read our full, actionable report on ArcBest here, it’s free.

Ryder (NYSE: R)

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Ryder reported revenues of $3.19 billion, up 5.5% year on year. This number lagged analysts' expectations by 1.5%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations.

The stock is down 3.1% since reporting and currently trades at $153.39.

Read our full, actionable report on Ryder here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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