Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at United Parcel Service (NYSE: UPS) and the best and worst performers in the air freight and logistics industry.
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% below.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
United Parcel Service (NYSE: UPS)
Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.22 billion, down 2.7% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ revenue estimates but a miss of analysts’ EPS estimates.
“I want to thank all UPSers for their dedication and hard work in what continues to be a dynamic and evolving trade environment,” said Carol Tomé, UPS chief executive officer.
Unsurprisingly, the stock is down 17.1% since reporting and currently trades at $84.20.
Is now the time to buy United Parcel Service? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, outperforming analysts’ expectations by 9.2%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Expeditors pulled off the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $117.35.
Is now the time to buy Expeditors? 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 and sales volume estimates.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.5% since the results and currently trades at $35.51.
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 print beat analysts’ expectations by 2.7%. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
The stock is up 4% since reporting and currently trades at $235.81.
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 result surpassed analysts’ expectations by 6.4%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.
GXO Logistics pulled off the fastest revenue growth among its peers. The stock is up 12.8% since reporting and currently trades at $55.30.
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.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
