As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including ArcBest (NASDAQ: ARCB) 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%.
Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.
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 $967.1 million, down 6.7% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
"I want to thank our employees for their commitment to excellence as they serve customers,” said Judy R. McReynolds, ArcBest Chairman and CEO.
The stock is up 7.8% since reporting and currently trades at $63.70.
Is now the time to buy ArcBest? 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 a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 12.2% since reporting. It currently trades at $24.10.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $219.4 million, down 18.8% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 10.5% since the results and currently trades at $8.66.
Read our full analysis of Heartland Express’s results here.
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 result surpassed analysts’ expectations by 1.6%. Taking a step back, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is up 12.7% since reporting and currently trades at $44.61.
Read our full, actionable report on Knight-Swift Transportation here, it’s free.
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 $1.81 billion, down 12.8% year on year. This print lagged analysts' expectations by 10.5%. It was a softer quarter as it also produced a significant miss of analysts’ adjusted operating income and EPS estimates.
Hertz had the weakest performance against analyst estimates among its peers. The stock is down 13.3% since reporting and currently trades at $6.04.
Read our full, actionable report on Hertz 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.
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