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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

Air Freight and Logistics Stocks Q2 Highlights: C.H. Robinson Worldwide (NASDAQ:CHRW)

CHRW Cover Image

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 air freight and logistics stocks fared in Q2, starting with C.H. Robinson Worldwide (NASDAQ: CHRW).

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 0.9% below.

In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.

C.H. Robinson Worldwide (NASDAQ: CHRW)

Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ: CHRW) offers freight transportation and logistics services.

C.H. Robinson Worldwide reported revenues of $4.14 billion, down 7.7% year on year. This print fell short of analysts’ expectations by 0.6%, but it was still a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

"When the current transformation of C.H. Robinson began in early 2024 with the implementation of a new Lean operating model, we recognize that some people had doubts and didn’t understand how this would enable the company to change its trajectory. Now, with six consecutive quarters of consistent outperformance through the disciplined execution of the strategy that we shared at our 2024 Investor Day, there is no doubt in our minds that we are on the right path to deliver sustainable outperformance in all market cycles," said President and Chief Executive Officer, Dave Bozeman.

C.H. Robinson Worldwide Total Revenue

Interestingly, the stock is up 20.5% since reporting and currently trades at $117.74.

Is now the time to buy C.H. Robinson Worldwide? 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 Total Revenue

Expeditors scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $118.73.

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. The stock is flat since the results and currently trades at $35.32.

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 surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is down 1.2% since reporting and currently trades at $226.44.

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

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 result topped analysts’ expectations by 6.4%. It was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

GXO Logistics achieved the fastest revenue growth among its peers. The stock is up 3% since reporting and currently trades at $50.49.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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

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