As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at air freight and logistics stocks, starting with GXO Logistics (NYSE:GXO).
The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics 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 7 air freight and logistics stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, air freight and logistics stocks have held steady amidst all this with share prices up 3.6% on average since the latest earnings results.
Best Q2: GXO Logistics (NYSE:GXO) With notable customers such as Nike (NYSE:NKE) and Apple (NASDAQ:AAPL), GXO (NYSE:GXO) manages outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of $2.85 billion, up 18.9% year on year. This print exceeded analysts’ expectations by 6%. Overall, it was a strong quarter for the company with a decent beat of analysts’ operating margin and organic revenue estimates.
Malcolm Wilson, chief executive officer of GXO, said, “In the second quarter, GXO delivered record revenue of $2.8 billion, reflecting growth of 19% year over year, along with sequential improvement in organic revenue growth and strong free cash flow."
GXO Logistics scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $51.
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C.H. Robinson Worldwide (NASDAQ:CHRW) Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.48 billion, up 1.4% year on year, in line with analysts’ expectations. The business had a strong quarter with an impressive beat of analysts’ operating margin and earnings estimates.
The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $100.07.
Weakest Q2: Hub Group (NASDAQ:HUBG) Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Hub Group reported revenues of $986.5 million, down 5.2% year on year, falling short of analysts’ expectations by 9.7%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and a miss of analysts’ volume estimates.
Hub Group delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 3.3% since the results and currently trades at $44.78.
Air Transport Services (NASDAQ:ATSG) Founded in 1980, Air Transport Services Group (NASDAQ:ATSG) provides air cargo transportation and logistics solutions.
Air Transport Services reported revenues of $491.5 million, down 7.1% year on year. This print lagged analysts' expectations by 4.3%. Overall, it was a slower quarter as it also produced a miss of analysts’ Cargo Aircraft Management revenue estimates.
Air Transport Services had the slowest revenue growth among its peers. The stock is up 13.1% since reporting and currently trades at $15.
United Parcel Service (NYSE:NYSE:UPS) Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.82 billion, down 1.1% year on year. This number came in 1.9% below analysts' expectations. It was a softer quarter as it also produced a miss of analysts’ earnings estimates.
United Parcel Service delivered the highest full-year guidance raise among its peers. The stock is down 12.4% since reporting and currently trades at $127.24.
This content was originally published on Stock Story
