As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at ground transportation stocks, starting with Schneider (NYSE: SNDR).
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 satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.
Schneider (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 reported revenues of $1.42 billion, up 7.9% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a strong quarter for the company with and a solid beat of analysts’ adjusted operating income estimates.
“We delivered another quarter of earnings growth driven by solid execution, particularly in our Truckload and Intermodal segments. The second quarter saw consistent demand trends with some seasonal patterns emerging, though less pronounced than usual, despite ongoing economic uncertainty,” said Mark Rourke, President and Chief Executive Officer of Schneider.
Unsurprisingly, the stock is down 7.4% since reporting and currently trades at $22.68.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $753.1 million, down 1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.4% since reporting. It currently trades at $26.60.
Is now the time to buy Werner? 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 and adjusted operating income estimates.
Heartland Express delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.4% since the results and currently trades at $8.11.
Read our full analysis of Heartland Express’s results here.
Ryder (NYSE: R)
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Ryder reported revenues of $3.19 billion, flat year on year. This result beat analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 5.9% since reporting and currently trades at $182.93.
Read our full, actionable report on Ryder here, it’s free for active Edge members.
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 $3.04 billion, flat year on year. This print topped analysts’ expectations by 1.4%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is down 24.8% since reporting and currently trades at $153.
Read our full, actionable report on Avis Budget Group here, it’s free for active Edge members.
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), 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 for 2025.
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