Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Expeditors (NYSE: EXPD) and the best and worst performers in the air freight and logistics industry.
The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics 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 6 air freight and logistics stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 3.6% below.
Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.
Best Q1: Expeditors (NYSE: EXPD)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.67 billion, up 20.8% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates.
"We continue to pull the right levers to grow all of our businesses with current customers as well as new ones," said Daniel R. Wall, President and Chief Executive Officer.
Expeditors achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.9% since reporting and currently trades at $118.40.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
United Parcel Service (NYSE: UPS)
Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.55 billion, flat year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with a solid beat of analysts’ sales volume and EBITDA estimates.
The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $100.70.
Is now the time to buy United Parcel Service? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Hub Group (NASDAQ: HUBG)
Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Hub Group reported revenues of $915.2 million, down 8.4% year on year, falling short of analysts’ expectations by 5.7%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 8.5% since the results and currently trades at $35.96.
Read our full analysis of Hub Group’s results here.
FedEx (NYSE: FDX)
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
FedEx reported revenues of $22.16 billion, up 1.9% year on year. This result beat analysts’ expectations by 0.9%. However, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations.
The stock is down 7.3% since reporting and currently trades at $228.
Read our full, actionable report on FedEx here, it’s free.
C.H. Robinson Worldwide (NASDAQ: CHRW)
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ: CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.05 billion, down 8.3% year on year. This print missed analysts’ expectations by 4.9%. More broadly, it was actually a strong quarter as it produced an impressive beat of analysts’ EBITDA estimates.
The stock is up 12.5% since reporting and currently trades at $100.28.
Read our full, actionable report on C.H. Robinson Worldwide here, it’s free.
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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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