Let’s dig into the relative performance of Schneider National (NYSE:SNDR) and its peers as we unravel the now-completed Q3 ground transportation earnings season.
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 11% on average since the latest earnings results.
Schneider National (NYSE:SNDR)
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.Schneider National reported revenues of $1.32 billion, down 2.7% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
“In the third quarter, our Dedicated and Intermodal businesses demonstrated their resilience, and Logistics maintained its profitable operations,” said Mark Rourke, President and Chief Executive Officer of Schneider.
Interestingly, the stock is up 8.3% since reporting and currently trades at $31.51.
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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 a solid beat of analysts’ EBITDA estimates.
XPO achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25.8% since reporting. It currently trades at $151.28.
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 3% since the results and currently trades at $39.42.
Landstar (NASDAQ:LSTR)
Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.Landstar reported revenues of $1.22 billion, down 5.8% year on year. This print met analysts’ expectations. More broadly, it was a softer quarter as it logged a miss of analysts’ EBITDA estimates.
The stock is up 3.4% since reporting and currently trades at $186.50.
Avis Budget Group (NASDAQ:CAR)
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.Avis Budget Group reported revenues of $3.48 billion, down 2.4% year on year. This print lagged analysts' expectations by 1.5%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.
The stock is up 21.8% since reporting and currently trades at $101.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.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
