Earnings results often indicate what direction a company will take in the months ahead. With Q2 now behind us, let’s have a look at Schneider National (NYSE:SNDR) 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; on average, revenues missed analyst 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. 2024 has been a different story as mixed signals have led to market volatility, and while some of the ground transportation stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.8% on average since the previous earnings results.
Schneider National (NYSE:SNDR) Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Schneider National reported revenues of $1.32 billion, down 2.2% year on year, falling short of analysts' expectations by 2.7%. Overall, it was a weaker quarter for the company with a miss of analysts' Truckload revenue estimates.
“The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market,” said Mark Rourke, President and Chief Executive Officer of Schneider.
The stock is up 1.6% since reporting and currently trades at $27.33.
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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.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 3.1% since reporting. It currently trades at $12.07.
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 $1.55 billion, flat year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 6.8% since the results and currently trades at $67.57.
ArcBest (NASDAQ:ARCB) Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
ArcBest reported revenues of $1.08 billion, down 2.3% year on year, surpassing analysts' expectations by 1.9%. Revenue aside, it was a mixed quarter for the company with a narrow beat of analysts' volume estimates but a miss of analysts' earnings estimates.
ArcBest delivered the biggest analyst estimates beat among its peers. The stock is down 12.2% since reporting and currently trades at $106.78.
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 $287.5 million, up 4.9% year on year, falling short of analysts' expectations by 4%. Overall, it was a decent quarter for the company with an impressive beat of analysts' Freight revenue revenue estimates.
The stock is up 2.2% since reporting and currently trades at $52.
This content was originally published on Stock Story
