Wrapping up Q2 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including Ryder (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 16 ground transportation stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.
Ryder (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 reported revenues of $3.18 billion, up 10.3% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a weaker quarter for the company with a miss of analysts’ Fleet Management Solutions revenue and earnings estimates.
"Ryder delivered solid second-quarter results and continued to outperform prior cycles," says Ryder Chairman and CEO Robert Sanchez.
Interestingly, the stock is up 6.2% since reporting and currently trades at $137.88.
Is now the time to buy Ryder? Find out by reading the original article on StockStory, it’s free.
Best 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 $274.8 million, down 10.3% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.36.
Weakest Q2: 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 $2.35 billion, down 3.4% year on year, falling short of analysts’ expectations by 4.3%. It was a weak quarter for the company with a miss of analysts’ earnings and volume estimates.
Hertz posted the weakest performance against analyst estimates in the group. As expected, the stock is down 15.4% since the results and currently trades at $3.46.
Old Dominion Freight Line (NASDAQ:ODFL) With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQGS:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Old Dominion Freight Line reported revenues of $1.50 billion, up 6.1% year on year, in line with analysts’ expectations. Zooming out, it was a mixed quarter for the company with a decent beat of analysts’ volume estimates.
The stock is up 3.3% since reporting and currently trades at $200.31.
RXO (NYSE:RXO) With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
RXO reported revenues of $930 million, down 3.4% year on year, in line with analysts’ expectations. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts’ volume estimates and a decent beat of analysts’ earnings estimates.
The stock is down 2.8% since reporting and currently trades at $29.03.
This content was originally published on Stock Story
