Let's dig into the relative performance of C.H. Robinson Worldwide (NASDAQ:CHRW) and its peers as we unravel the now-completed Q1 air freight and logistics earnings season.
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 an ok Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but air freight and logistics stocks have shown resilience, with share prices up 9.2% on average since the previous earnings results.
Best Q1: C.H. Robinson Worldwide (NASDAQ:CHRW) Originally a wholesale produce brokerage house, C.H. Robinson (NASDAQ:CHRW) is a global logistics company providing transportation and supply chain solutions.
C.H. Robinson Worldwide reported revenues of $4.41 billion, down 4.3% year on year, exceeding analysts' expectations by 3.1%. Overall, it was a stunning quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' Global Forwarding revenue estimates.
"Our first quarter results and adjusted earnings per share of $0.86 reflects a change in our execution and discipline, as we began implementing a new Lean-based operating model. And although we continue to battle through an elongated freight recession with an oversupply of capacity, I’m optimistic about our ability to continue improving our execution regardless of the market environment," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman.
C.H. Robinson Worldwide achieved the biggest analyst estimates beat of the whole group. The stock is up 20.5% since reporting and currently trades at $86.84.
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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 $488.6 million, down 2.5% year on year, outperforming analysts' expectations by 1.8%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 11.6% since reporting. It currently trades at $14.75.
Weakest Q1: 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 $999.5 million, down 13.3% year on year, falling short of analysts' expectations by 5.3%. It was a weak quarter for the company with a miss of analysts' volume estimates.
Hub Group had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.6% since the results and currently trades at $44.47.
United Parcel Service (NYSE:UPS) Started using bicycles for delivery, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.71 billion, down 5.3% year on year, falling short of analysts' expectations by 1%. Revenue aside, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates.
The stock is down 1.4% since reporting and currently trades at $143.21.
FedEx (NYSE:NYSE:FDX) Founded by a former Marine pilot, FedEx (NYSE:FDX) provides transportation, e-commerce, and business services to companies and individuals.
FedEx reported revenues of $22.11 billion, flat year on year, in line with analysts' expectations. Revenue aside, it was an ok quarter for the company with a narrow beat of analysts' earnings estimates.
The stock is up 16.9% since reporting and currently trades at $299.69.
This content was originally published on Stock Story
