As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the ground transportation industry, including Ryder System (NYSE:R) 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 14 ground transportation stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1.1%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but ground transportation stocks have shown resilience, with share prices up 9.4% on average since the previous earnings results.
Ryder System (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 System reported revenues of $3.10 billion, up 4.9% year on year, exceeding analysts' expectations by 1.2%. Overall, it was a strong quarter for the company with a decent beat of analysts' earnings estimates.
"Ryder delivered solid first-quarter results amid a challenging freight environment by continuing to execute on our balanced growth strategy," says Ryder Chairman and CEO Robert Sanchez.
The stock is up 21.1% since reporting and currently trades at $131.94.
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Best Q1: Universal Logistics (NASDAQ:ULH) Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of transportation and logistics solutions.
Universal Logistics reported revenues of $491.9 million, up 12.5% year on year, outperforming analysts' expectations by 18.1%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Universal Logistics achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.5% since reporting. It currently trades at $43.60.
Weakest Q1: U-Haul (NYSE:UHAL) Started in a garage, U-Haul (NYSE:UHAL) provides rental trucks and storage facilities for individuals and businesses seeking moving solutions.
U-Haul reported revenues of $1.10 billion, down 7.8% year on year, falling short of analysts' expectations by 6.1%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
U-Haul posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 3.7% since the results and currently trades at $65.17.
Avis Budget Group (NASDAQ:CAR) The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.
Avis Budget Group reported revenues of $2.55 billion, flat year on year, surpassing analysts' expectations by 1.2%. Zooming out, it was a solid quarter for the company with an impressive beat of analysts' volume estimates.
The stock is up 13.6% since reporting and currently trades at $107.63.
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 $2.08 billion, up 1.6% year on year, surpassing analysts' expectations by 1.7%. Zooming out, it was a solid quarter for the company with an impressive beat of analysts' volume estimates.
The stock is down 25.8% since reporting and currently trades at $4.31.
This content was originally published on Stock Story
