Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Werner (NASDAQ:WERN) 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 softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.9%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $745.7 million, down 8.8% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“Freight conditions remained challenging while tightening late in the quarter from hurricane related supply chain disruptions. One-Way Truckload revenue per total mile increased year over year for the first time in seven quarters, and production improved for the sixth consecutive quarter. Our Dedicated fleet grew sequentially, and revenue per truck growth continued,” said Derek Leathers, Chairman and CEO.
Unsurprisingly, the stock is down 5.7% since reporting and currently trades at $36.08.
Read our full report on Werner here, it’s free.
Best Q3: 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 $2.05 billion, up 3.7% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
XPO achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12.3% since reporting. It currently trades at $135.03.
Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free.
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 $259.9 million, down 11.9% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Heartland Express delivered the slowest revenue growth in the group. As expected, the stock is down 2.2% since the results and currently trades at $11.13.
Read our full analysis of Heartland Express’s results here.
U-Haul (NYSE:UHAL)
Founded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities.
U-Haul reported revenues of $1.66 billion, flat year on year. This number came in 1.7% below analysts' expectations. It was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.
The stock is down 7.9% since reporting and currently trades at $70.35.
Read our full, actionable report on U-Haul here, it’s free.
Hertz (NASDAQ:HTZ)
Started with a dozen Model T Fords, Hertz (NASDAQ:HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Hertz reported revenues of $2.58 billion, down 4.7% year on year. This result missed analysts’ expectations by 3.8%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 3.9% since reporting and currently trades at $3.49.
Read our full, actionable report on Hertz 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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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