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 RXO (NYSE:RXO) and the rest of the ground transportation stocks fared in Q4.
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 15 ground transportation stocks we track reported a slower Q4. 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 9.5% since the latest 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 $1.67 billion, up 70.4% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
Drew Wilkerson, chief executive officer of RXO, said, “The integration of Coyote Logistics remains ahead of schedule and we’re again raising our estimate for annualized cost synergies. We now expect to achieve at least $50 million in synergies.”
RXO pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.5% since reporting and currently trades at $19.65.
Read our full report on RXO here, it’s free.
Best Q4: 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 $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $124.75.
Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 3.7% since the results and currently trades at $86.45.
Read our full analysis of Avis Budget Group’s results here.
Old Dominion Freight Line (NASDAQ:ODFL)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Old Dominion Freight Line reported revenues of $1.39 billion, down 7.3% year on year. This result surpassed analysts’ expectations by 1%. More broadly, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates but sales volume in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $182.25.
Read our full, actionable report on Old Dominion Freight Line here, it’s free.
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 $754.7 million, down 8.2% year on year. This number lagged analysts' expectations by 0.9%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
Werner had the slowest revenue growth among its peers. The stock is down 3.5% since reporting and currently trades at $33.46.
Read our full, actionable report on Werner here, it’s free.
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