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 air freight and logistics stocks, starting with Expeditors (NYSE: EXPD).
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 Q2. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 2.2% below.
Thankfully, share prices of the companies have been resilient as they are up 7.4% on average since the latest earnings results.
Best Q2: Expeditors (NYSE: EXPD)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.65 billion, up 8.7% year on year. This print exceeded analysts’ expectations by 9.2%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence,” said Daniel R. Wall, President and Chief Executive Officer.
Expeditors scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.7% since reporting and currently trades at $123.52.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $4.14 billion, down 7.7% year on year, falling short of analysts’ expectations by 0.6%. However, the business still had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 38.6% since reporting. It currently trades at $135.40.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $905.6 million, down 8.2% year on year, falling short of analysts’ expectations by 1.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 2.4% since the results and currently trades at $34.16.
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 $22.24 billion, up 3.1% year on year. This result topped analysts’ expectations by 2.7%. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 7.4% since reporting and currently trades at $243.70.
Read our full, actionable report on FedEx here, it’s free for active Edge members.
GXO Logistics (NYSE: GXO)
With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of $3.30 billion, up 15.9% year on year. This number surpassed analysts’ expectations by 6.4%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates.
GXO Logistics achieved the fastest revenue growth among its peers. The stock is up 9.6% since reporting and currently trades at $53.73.
Read our full, actionable report on GXO Logistics 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.
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