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Q1 Earnings Highs And Lows: Avis Budget Group (NASDAQ:CAR) Vs The Rest Of The Ground Transportation Stocks


Adam Hejl /
2024/07/09 3:36 am EDT

Let's dig into the relative performance of Avis Budget Group (NASDAQ:CAR) and its peers as we unravel the now-completed Q1 ground transportation earnings season.

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 13 ground transportation stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but ground transportation stocks have shown resilience, with share prices up 5.9% on average since the previous earnings results.

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 $2.55 billion, down 0.2% year on year, topping analysts' expectations by 1.2%. It was a solid quarter for the company, with an impressive beat of analysts' volume estimates.

“The strong travel demand from last year continued into the first quarter with record volume in the Americas as well as improved pricing trends as the quarter progressed,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.

Avis Budget Group Total Revenue

The stock is up 7.9% since the results and currently trades at $102.29.

Is now the time to buy Avis Budget Group? Access our full analysis of the earnings results here, it's free.

Best Q1: Universal Logistics (NASDAQ:ULH)

Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of transportation and logistics solutions.

Universal Logistics reported revenues of $491.9 million, up 12.5% year on year, outperforming analysts' expectations by 18.1%. It was an incredible quarter for the company, with revenue and EPS exceeding Wall Street's expectations.

Universal Logistics Total Revenue

Universal Logistics achieved the biggest analyst estimates beat among its peers. The stock is up 19.4% since the results and currently trades at $39.01.

Is now the time to buy Universal Logistics? Access our full analysis of the earnings results here, it's free.

Weakest Q1: U-Haul (NYSE:UHAL)

Started in a garage, U-Haul (NYSE:UHAL) provides rental trucks and storage facilities for individuals and businesses seeking moving solutions.

U-Haul reported revenues of $1.10 billion, down 7.8% year on year, falling short of analysts' expectations by 6.1%. It was a weak quarter for the company, with revenue and EPS missing analysts' estimates.

U-Haul had the weakest performance against analyst estimates in the group. The stock is down 1.5% since the results and currently trades at $61.89.

Read our full analysis of U-Haul's results here.

Landstar (NASDAQ:LSTR)

Founded in 1968, Landstar (NASDAQ:LSTR) is a transportation services company providing integrated logistics.

Landstar reported revenues of $1.17 billion, down 18.3% year on year, surpassing analysts' expectations by 4.7%. It was an exceptional quarter for the company, with an impressive beat of analysts' Van Equipment revenue estimates and a decent beat of analysts' earnings estimates.

The stock is up 4.4% since the results and currently trades at $178.22.

Read our full, actionable report on Landstar here, it's free.

Ryder System (NYSE:R)

Founded as a concrete hauling company, Ryder System (NYSE:R) provides comprehensive transportation and logistics services globally.

Ryder System reported revenues of $3.10 billion, up 4.9% year on year, surpassing analysts' expectations by 1.2%. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates.

The stock is up 10.5% since the results and currently trades at $120.31.

Read our full, actionable report on Ryder System here, it's free.

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