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Reflecting On Transportation and Logistics Stocks’ Q1 Earnings: CSX (NASDAQ:CSX)


Anthony Lee /
2024/07/10 4:44 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the transportation and logistics industry, including CSX (NASDAQ:CSX) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.

The 27 transportation and logistics stocks we track reported an ok Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and transportation and logistics stocks have held roughly steady amidst all this, with share prices up 1.1% on average since the previous earnings results.

CSX (NASDAQ:CSX)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.

CSX reported revenues of $3.68 billion, flat year on year, in line with analysts' expectations. It was an ok quarter for the company with a narrow beat of analysts' volume estimates.

CSX Total Revenue

The stock is down 4.5% since reporting and currently trades at $32.61.

Is now the time to buy CSX? 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 an impressive beat of analysts' earnings estimates.

Universal Logistics Total Revenue

Universal Logistics pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19.4% since reporting. It 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 a miss of analysts' earnings estimates.

As expected, 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.

RXO (NYSE:RXO)

Spun off from XPO in 2022, RXO (NYSE:RXO) specializes in providing asset-light transportation and logistics services.

RXO reported revenues of $913 million, down 9.6% year on year, falling short of analysts' expectations by 3.7%. Looking more broadly, it was a decent quarter for the company with an impressive beat of analysts' volume estimates.

The stock is up 40.7% since reporting and currently trades at $26.75.

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

Union Pacific (NYSE:UNP)

Part of the transcontinental railroad project, Union Pacific (NYSE:UNP) is a freight transportation company that operates a major railroad network.

Union Pacific reported revenues of $6.03 billion, flat year on year, in line with analysts' expectations. Looking more broadly, it was a good quarter for the company with a decent beat of analysts' earnings estimates.

The stock is down 5.6% since reporting and currently trades at $219.12.

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

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