Yahoo Finance Q1 Earnings Highlights: RXO (NYSE:RXO) Vs The Rest Of The Ground Transportation Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how ground transportation stocks fared in Q1, starting with RXO (NYSE:RXO).
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 14 ground transportation stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1.1%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but ground transportation stocks have performed well, with the share prices up 13% on average since the previous earnings results.
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 $913 million, down 9.6% year on year, falling short of analysts' expectations by 3.7%. Overall, it was a decent quarter for the company with an impressive beat of analysts' volume estimates.
Drew Wilkerson, chief executive officer of RXO, said, “RXO continued to deliver exceptional brokerage volume growth and strong margin performance in the first quarter of 2024, despite persistent softness in the freight market. Our brokerage business achieved double-digit volume growth for the fourth-consecutive quarter, with gross margin of 14.2%. Our complementary services continued to perform well, and our companywide sales pipeline is the largest it’s been in four years.
The stock is up 56% since reporting and currently trades at $29.65.
Is now the time to buy RXO? Access our full analysis of the earnings results here, it's free.
Best Q1: Universal Logistics (NASDAQ:ULH)
Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of transportation and logistics solutions.
Universal Logistics reported revenues of $491.9 million, up 12.5% year on year, outperforming analysts' expectations by 18.1%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Universal Logistics achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.5% since reporting. It currently trades at $43.60.
Is now the time to buy Universal Logistics? Access our full analysis of the earnings results here, it's free.
Weakest Q1: U-Haul (NYSE:UHAL)
Started in a garage, U-Haul (NYSE:UHAL) provides rental trucks and storage facilities for individuals and businesses seeking moving solutions.
U-Haul reported revenues of $1.10 billion, down 7.8% year on year, falling short of analysts' expectations by 6.1%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
U-Haul had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 3.7% since the results and currently trades at $65.17.
Read our full analysis of U-Haul's results here.
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 $1.17 billion, down 18.3% year on year, surpassing analysts' expectations by 4.7%. Revenue aside, it was an exceptional quarter for the company with an impressive beat of analysts' Van Equipment revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 11% since reporting and currently trades at $189.52.
Read our full, actionable report on Landstar here, it's free.
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 $278.8 million, up 4.5% year on year, in line with analysts' expectations. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' Freight revenue revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 18.7% since reporting and currently trades at $52.27.
Read our full, actionable report on Covenant Logistics here, it's free.
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