The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Saia (NASDAQ:SAIA) and the rest of the ground transportation stocks fared in Q1.
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%. 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. The start of 2024 has been a different story as mixed signals have led to market volatility, but ground transportation stocks have performed well, with the share prices up 12% on average since the previous earnings results.
Saia (NASDAQ:SAIA) After realizing that there was more success in delivering produce rather than selling it, Saia (NASDAQ:SAIA) makes less-than-truckload deliveries in the United States.
Saia reported revenues of $754.8 million, up 14.3% year on year, falling short of analysts' expectations by 2.2%. Overall, it was a weak quarter for the company with a miss of analysts' volume and earnings estimates.
Saia President and CEO, Fritz Holzgrefe, commented on the quarter stating, “As is typical in the first quarter of the year, winter weather impacted operations in the first months of the quarter. March trends improved a bit from February, but we did not experience the expected seasonal step-up. Shipment growth of 15.7% for the full quarter included March shipments per workday increasing by 16.8% from the prior year. Despite volume being below our expectations late in the quarter, we continued to focus on our customer service metrics which saw continued improvement, reflecting our ongoing commitment to provide an excellent service product for customers.”
Saia scored the fastest revenue growth of the whole group. The stock is down 11% since reporting and currently trades at $483.74.
Is now the time to buy Saia? Find out by reading the original article on StockStory, it's free.
Best Q1: Universal Logistics (NASDAQ:ULH) Universal Logistics Holdings, Inc. (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
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 40.6% since reporting. It currently trades at $45.92.
Weakest Q1: U-Haul (NYSE:UHAL) Founded by a husband and wife, U-Haul (NYSE:UHAL) offers truck and trailer rentals and self storage units.
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 had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.5% since the results and currently trades at $66.32.
Landstar (NASDAQ:LSTR) Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.
Landstar reported revenues of $1.17 billion, down 18.3% year on year, surpassing analysts' expectations by 4.7%. Revenue aside, it was an exceptional quarter for the company with an impressive beat of analysts' Van Equipment revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 8.9% since reporting and currently trades at $186.03.
Covenant Logistics (NASDAQ:CVLG) Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Covenant Logistics reported revenues of $278.8 million, up 4.5% year on year, in line with analysts' expectations. Overall, it was a very strong quarter for the company with an impressive beat of analysts' Freight revenue revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 15.5% since reporting and currently trades at $50.85.
This content was originally published on Stock Story
