Let's dig into the relative performance of Schneider National (NYSE:SNDR) and its peers as we unravel the now-completed Q1 ground transportation earnings season.
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 10 ground transportation stocks we track reported a slower Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but ground transportation stocks have shown resilience, with share prices up 5.7% on average since the previous earnings results.
Slowest Q1: Schneider National (NYSE:SNDR) Established after the founder sold the family car, Schneider National (NYSE:SNDR) is a transportation and logistics company offering a portfolio of truckload, intermodal, and logistics solutions.
Schneider National reported revenues of $1.32 billion, down 7.7% year on year, falling short of analysts' expectations by 1.9%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.
“The enterprise continued to feel the pressures of the ongoing freight recession in the first quarter,” said Mark Rourke, President and Chief Executive Officer of Schneider.
The stock is up 13.7% since the results and currently trades at $23.97.
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Best Q1: Ryder System (NYSE:R) Founded as a concrete hauling company, Ryder System (NYSE:R) provides comprehensive transportation and logistics services globally.
Ryder System reported revenues of $3.10 billion, up 4.9% year on year, outperforming analysts' expectations by 1.2%. It was a very strong quarter for the company, with an impressive beat of analysts' operating margin estimates and a decent beat of analysts' earnings estimates.
The stock is up 13.7% since the results and currently trades at $123.88.
Saia (NASDAQ:SAIA) Founded by a produce dealer, Saia (NASDAQ:SAIA) provides freight transportation solutions.
Saia reported revenues of $754.8 million, up 14.3% year on year, falling short of analysts' expectations by 2.2%. It was a weak quarter for the company, with a miss of analysts' operating margin and volume estimates.
Saia scored the fastest revenue growth in the group. The stock is down 16.5% since the results and currently trades at $454.
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, down 0.2% year on year, surpassing analysts' expectations by 1.2%. It was a very strong quarter for the company, with an impressive beat of analysts' volume estimates.
The stock is up 10.4% since the results and currently trades at $104.57.
Old Dominion Freight Line (NASDAQ:ODFL) Founded by a husband and wife, Old Dominion Freight Line (NASDAQ:ODFL) specializes in less-than-truckload shipping services, offering logistical and supply chain management solutions.
Old Dominion Freight Line reported revenues of $1.46 billion, up 1.2% year on year, falling short of analysts' expectations by 0.8%. It was a slower quarter for the company, with a miss of analysts' revenue and volume estimates.
The stock is down 19.5% since the results and currently trades at $176.58.
