As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the ground transportation industry, including ArcBest (NASDAQ:ARCB) 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 15 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10% since the latest earnings results.
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 $1.00 billion, down 8.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“Throughout 2024, we made significant progress on controlling costs, improving productivity, and enhancing our service quality,” said Judy R. McReynolds, ArcBest Chairman and CEO.
The stock is down 11.4% since reporting and currently trades at $83.55.
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Best Q4: 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 $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.5% since reporting. It currently trades at $122.10.
Weakest Q4: Avis Budget Group (NASDAQ:CAR)
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.Avis Budget Group reported revenues of $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 5.9% since the results and currently trades at $84.47.
Old Dominion Freight Line (NASDAQ:ODFL)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.Old Dominion Freight Line reported revenues of $1.39 billion, down 7.3% year on year. This print topped analysts’ expectations by 1%. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ EPS estimates but sales volume in line with analysts’ estimates.
The stock is down 2% since reporting and currently trades at $179.88.
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 $2.04 billion, down 6.6% year on year. This result lagged analysts' expectations by 3.7%. It was a softer quarter as it also produced a significant miss of analysts’ adjusted operating income and EPS estimates.
Hertz had the weakest performance against analyst estimates among its peers. The stock is down 2.6% since reporting and currently trades at $4.15.
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