The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Universal Logistics (NASDAQ:ULH) and the rest of the ground transportation stocks fared in Q2.
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 mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged 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 $393.8 million, down 14.8% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.
"Universal's results for the second quarter, although muted, were broadly in-line with our previously guided expectations," stated Tim Phillips, Universal's CEO.
The stock is down 40.5% since reporting and currently trades at $16.31.
Read our full report on Universal Logistics here, it’s free for active Edge members.
Best 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 $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Hertz delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $5.21.
Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $210.4 million, down 23.4% year on year, falling short of analysts’ expectations by 10.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Heartland Express delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.8% since the results and currently trades at $8.83.
Read our full analysis of Heartland Express’s results here.
RXO (NYSE:RXO)
With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
RXO reported revenues of $1.42 billion, up 36.6% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
RXO delivered the fastest revenue growth among its peers. The stock is down 18.7% since reporting and currently trades at $14.32.
Read our full, actionable report on RXO here, it’s free for active Edge members.
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 $2.11 billion, up 2.8% year on year. This number beat analysts’ expectations by 1.9%. It was a strong quarter as it also produced an impressive beat of analysts’ European Transportation revenue estimates and a solid beat of analysts’ revenue estimates.
The stock is up 12% since reporting and currently trades at $139.77.
Read our full, actionable report on XPO here, it’s free for active Edge members.
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 2024, a quarter in November) have propped up markets, 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.