Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Q1 Earnings Highlights: Knight-Swift Transportation (NYSE:KNX) Vs The Rest Of The Ground Transportation Stocks

KNX Cover Image

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Knight-Swift Transportation (NYSE: KNX) 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 Q1. As a group, revenues missed analysts’ consensus estimates by 2.2%.

Luckily, ground transportation stocks have performed well with share prices up 16.1% on average since the latest earnings results.

Knight-Swift Transportation (NYSE: KNX)

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE: KNX) offers less-than-truckload and full truckload delivery services.

Knight-Swift Transportation reported revenues of $1.82 billion, flat year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EPS estimates.

Knight-Swift Transportation Total Revenue

Interestingly, the stock is up 13.8% since reporting and currently trades at $45.07.

Is now the time to buy Knight-Swift Transportation? Access our full analysis of the earnings results 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’ EBITDA estimates.

Schneider Total Revenue

The market seems happy with the results as the stock is up 17.1% since reporting. It currently trades at $25.15.

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 1.9% since the results and currently trades at $26.38.

Read our full analysis of Universal Logistics’s results here.

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 $1.95 billion, down 3.2% year on year. This number lagged analysts' expectations by 0.9%. In spite of that, it was a strong quarter as it produced a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.

The stock is up 31.9% since reporting and currently trades at $128.50.

Read our full, actionable report on XPO 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 $3.13 billion, up 1.1% year on year. This print met analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance beating analysts’ expectations.

The stock is up 24.4% since reporting and currently trades at $171.49.

Read our full, actionable report on Ryder 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.

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.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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