As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including U-Haul (NYSE: UHAL) 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 satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.7% since the latest earnings results.
U-Haul (NYSE: UHAL)
Founded by a husband and wife duo, U-Haul (NYSE: UHAL) is a provider of rental trucks and storage facilities.
U-Haul reported revenues of $1.63 billion, up 5.3% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $56.38.
Read our full report on U-Haul here, it’s free for active Edge members.
Best Q2: Werner (NASDAQ: WERN)
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Werner reported revenues of $753.1 million, down 1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $28.83.
Is now the time to buy Werner? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $210.4 million, down 23.4% year on year, falling short of analysts’ expectations by 10.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Heartland Express 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 $8.75.
Read our full analysis of Heartland Express’s results here.
Covenant Logistics (NYSE: CVLG)
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ: CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Covenant Logistics reported revenues of $302.9 million, up 5.3% year on year. This result surpassed analysts’ expectations by 3.7%. Overall, it was a strong quarter as it also recorded and a solid beat of analysts’ adjusted operating income estimates.
Covenant Logistics scored the biggest analyst estimates beat among its peers. The stock is down 10.9% since reporting and currently trades at $21.75.
Read our full, actionable report on Covenant Logistics here, it’s free for active Edge members.
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 $1.41 billion, down 6.1% year on year. This print missed analysts’ expectations by 0.7%. Overall, it was a slower quarter as it also produced a slight miss of analysts’ sales volume estimates.
The stock is down 12.3% since reporting and currently trades at $142.19.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 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.
