Wrapping up Q2 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including ArcBest (NASDAQ:ARCB) and its peers.
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.
While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
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 $1.02 billion, down 5.2% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.
“Despite ongoing macroeconomic challenges, I commend our team for their continued commitment to meeting customer needs and achieving solid results,” said Judy R. McReynolds, ArcBest Chairman and CEO.
Unsurprisingly, the stock is down 8% since reporting and currently trades at $75.34.
Read our full report on ArcBest here, it’s free.
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.
The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $28.61.
Is now the time to buy Werner? Access our full analysis of the earnings results here, it’s free.
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’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Heartland Express delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $8.63.
Read our full analysis of Heartland Express’s results here.
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 $2.08 billion, flat year on year. This print surpassed analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also recorded and a solid beat of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $132.62.
Read our full, actionable report on XPO here, it’s free.
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%. It was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 8.9% since reporting and currently trades at $188.12.
Read our full, actionable report on Ryder here, it’s free.
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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