Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at 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 mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 7.5% on average 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 $1.72 billion, up 3.7% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Unsurprisingly, the stock is down 3.3% since reporting and currently trades at $51.66.
Read our full report on U-Haul here, it’s free for active Edge members.
Best Q3: Hertz (NASDAQ: HTZ)
Started with a dozen Model T Fords, Hertz (NASDAQ: HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.
Hertz scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $5.74.
Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $396.8 million, down 7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 2.1% since the results and currently trades at $14.99.
Read our full analysis of Universal Logistics’s results here.
Saia (NASDAQ: SAIA)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ: SAIA) is a provider of freight transportation solutions.
Saia reported revenues of $839.6 million, flat year on year. This result surpassed analysts’ expectations by 1%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 19.3% since reporting and currently trades at $330.82.
Read our full, actionable report on Saia here, it’s free for active Edge members.
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 $1.93 billion, up 2.7% year on year. This number beat analysts’ expectations by 1.7%. Taking a step back, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates and EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is up 12.8% since reporting and currently trades at $53.45.
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.
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