Let's dig into the relative performance of Norfolk Southern Corporation (NYSE:NSC) and its peers as we unravel the now-completed Q2 transportation and logistics earnings season.
The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.
The 31 transportation and logistics stocks we track reported a mixed Q2. As a group, revenues were in line with analysts' consensus estimates.
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, and while some transportation and logistics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
Norfolk Southern Corporation (NYSE:NSC) Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE:NSC) is a freight transportation company operating a major railroad network across the eastern United States.
Norfolk Southern Corporation reported revenues of $3.04 billion, up 2.1% year on year. This print was in line with analysts' expectations, and overall, it was a good quarter for the company with a decent beat of analysts' earnings estimates.
Interestingly, the stock is up 6.5% since reporting and currently trades at $237.15.
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Best Q2: Matson (NYSE:MATX) Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $847.4 million, up 9.6% year on year, outperforming analysts' expectations by 3.7%. It was an exceptional quarter for the company with a decent beat of analysts' earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.6% since reporting. It currently trades at $125.01.
Weakest Q2: 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 $2.35 billion, down 3.4% year on year, falling short of analysts' expectations by 4.3%. It was a weak quarter for the company with a miss of analysts' earnings and volume estimates.
As expected, the stock is down 16.9% since the results and currently trades at $3.40.
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 $1.55 billion, flat year on year, in line with analysts' expectations. Zooming out, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 6.6% since reporting and currently trades at $67.43.
Heartland Express (NASDAQ:HTLD) Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico.
Heartland Express reported revenues of $274.8 million, down 10.3% year on year, in line with analysts' expectations. More broadly, it was a decent quarter for the company with a beat of analysts' earnings estimates.
The stock is down 4.7% since reporting and currently trades at $11.87.
This content was originally published on Stock Story
