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 Ryder (NYSE: R).
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 slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.2%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
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 $3.13 billion, up 1.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance beating analysts’ expectations.
"I'm proud of the Ryder team for delivering double-digit earnings growth in the first quarter," says Ryder Chairman and CEO Robert Sanchez.
The stock is up 11.4% since reporting and currently trades at $153.58.
Is now the time to buy Ryder? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $1.40 billion, up 6.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $24.41.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $712.1 million, down 7.4% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ Logistics revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 4.9% since the results and currently trades at $26.30.
Read our full analysis of Werner’s results here.
ArcBest (NASDAQ: ARCB)
Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
ArcBest reported revenues of $967.1 million, down 6.7% year on year. This print lagged analysts' expectations by 2.7%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates.
The stock is up 5.6% since reporting and currently trades at $62.39.
Read our full, actionable report on ArcBest here, it’s free.
Covenant Logistics (NYSE: 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 $269.4 million, down 3.4% year on year. This result missed analysts’ expectations by 4.5%. Overall, it was a disappointing quarter as it also produced a miss of analysts’ Freight revenue estimates.
The stock is up 20.7% since reporting and currently trades at $22.68.
Read our full, actionable report on Covenant Logistics here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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