Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Universal Logistics (NASDAQ:ULH) and the best and worst performers in the ground transportation industry.
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 softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.9%.
Luckily, ground transportation stocks have performed well with share prices up 16% on average since the latest earnings results.
Universal Logistics (NASDAQ:ULH)
Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.Universal Logistics reported revenues of $426.8 million, up 1.3% year on year. This print fell short of analysts’ expectations by 8%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.
"Universal's diverse service offerings continue to be a strategic advantage, consistently driving stand-out results in our space," commented Tim Phillips, Universal's CEO.
Universal Logistics delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 23.5% since reporting and currently trades at $53.61.
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Best Q3: 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 $2.05 billion, up 3.7% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
XPO scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 27.6% since reporting. It currently trades at $153.49.
Weakest Q3: 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 $745.7 million, down 8.8% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 7.4% since the results and currently trades at $41.10.
Covenant Logistics (NASDAQ:CVLG)
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.Covenant Logistics reported revenues of $287.9 million, flat year on year. This number missed analysts’ expectations by 2.8%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but a miss of analysts’ Freight revenue estimates.
The stock is up 13.4% since reporting and currently trades at $58.40.
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 $1.06 billion, down 5.8% year on year. This print met analysts’ expectations. However, it was a softer quarter as it recorded a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is up 9.3% since reporting and currently trades at $114.01.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
