The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how ground transportation stocks fared in Q2, starting with Hertz (NASDAQ:HTZ).
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%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and ground transportation stocks have had a rough stretch. On average, share prices are down 8.3% since the latest earnings results.
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. This print fell short of analysts’ expectations by 4.3%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.
"We're moving quickly with a best-in-class leadership team, a strategy laser-focused on delivering sustainable returns and elevating our operational performance across the business," said Gil West, Hertz CEO.
Hertz delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 35.5% since reporting and currently trades at $2.64.
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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. The business had an exceptional quarter with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.4% since reporting. It currently trades at $11.54.
Werner (NASDAQ:WERN) Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Werner reported revenues of $760.8 million, down 6.2% year on year, falling short of analysts’ expectations by 1.2%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 10.5% since the results and currently trades at $36.28.
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. This result missed analysts’ expectations by 2.7%. Taking a step back, it was a disappointing quarter with a miss of analysts’ revenue estimates.
The stock is flat since reporting and currently trades at $27.13.
XPO (NYSE:XPO) Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.
XPO reported revenues of $2.08 billion, up 8.5% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a decent beat of analysts’ earnings estimates.
The stock is down 11.9% since reporting and currently trades at $101.18.
This content was originally published on Stock Story
