As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at ground transportation stocks, 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 14 ground transportation stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1.1%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but ground transportation stocks have shown resilience, with share prices up 8.6% on average since the previous earnings results.
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 $2.08 billion, up 1.6% year on year, exceeding analysts' expectations by 1.7%. Overall, it was a solid quarter for the company with an impressive beat of analysts' volume estimates.
"Fleet and direct operating costs weighed on this quarter's performance," said Gil West, Hertz chief executive officer.
The stock is down 34.7% since reporting and currently trades at $3.79.
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Best Q1: Universal Logistics (NASDAQ:ULH) Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of transportation and logistics solutions.
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 scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 32.8% since reporting. It currently trades at $43.39.
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 posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 4.1% since the results and currently trades at $65.43.
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%. More broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Saia scored the fastest revenue growth among its peers. The stock is down 11.7% since reporting and currently trades at $480.
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 $1.04 billion, down 6.3% year on year, in line with analysts' expectations. Taking a step back, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
The stock is down 10.9% since reporting and currently trades at $115.21.
This content was originally published on Stock Story
