Wrapping up Q2 earnings, we look at the numbers and key takeaways for the air freight and logistics stocks, including FedEx (NYSE:FDX) and its peers.
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 a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.8%.
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. However, air freight and logistics stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Best Q2: FedEx (NYSE:FDX) Infamously taking its last $5,000 to a Las Vegas blackjack table to keep the company afloat, FedEx (NYSE:FDX) is a provider of parcel and cargo delivery services
FedEx reported revenues of $22.11 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ earnings estimates.
“We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a challenging revenue environment,” said Raj Subramaniam, FedEx Corp (NYSE:FDX). president and chief executive officer.
Interestingly, the stock is up 10.2% since reporting and currently trades at $282.50.
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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 $491.5 million, down 7.1% year on year, falling short of analysts’ expectations by 4.3%. It performed better than its peers, but it was unfortunately a weak quarter for the company with a miss of analysts’ Cargo Aircraft Management revenue estimates.
The market seems happy with the results as the stock is up 16% since reporting. It currently trades at $15.38.
Weakest Q2: 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 $986.5 million, down 5.2% year on year, falling short of analysts’ expectations by 9.7%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ volume estimates.
Hub Group posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 7.9% since the results and currently trades at $42.64.
United Parcel Service (NYSE:NYSE:UPS) Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.82 billion, down 1.1% year on year, falling short of analysts’ expectations by 1.9%. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings and volume estimates.
United Parcel Service achieved the highest full-year guidance raise among its peers. The stock is down 12.6% since reporting and currently trades at $126.90.
Expeditors (NYSE:EXPD) Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.44 billion, up 8.9% year on year, surpassing analysts’ expectations by 5.4%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts’ Airfreight revenue estimates.
The stock is down 1.7% since reporting and currently trades at $119.29.
This content was originally published on Stock Story
