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Winners And Losers Of Q1: Old Dominion Freight Line (NASDAQ:ODFL) Vs The Rest Of The Ground Transportation Stocks


Radek Strnad /
2024/07/11 7:31 am EDT

Let's dig into the relative performance of Old Dominion Freight Line (NASDAQ:ODFL) 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 14 ground transportation stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1%. 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 ground transportation stocks have held roughly steady amidst all this, with share prices up 0.9% on average since the previous earnings results.

Old Dominion Freight Line (NASDAQ:ODFL)

Founded by a husband and wife, Old Dominion Freight Line (NASDAQ:ODFL) specializes in less-than-truckload shipping services, offering logistical and supply chain management solutions.

Old Dominion Freight Line reported revenues of $1.46 billion, up 1.2% year on year, in line with analysts' expectations. It was a slower quarter for the company with a miss of analysts' volume and earnings estimates.

Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, “Old Dominion’s financial results improved during the first quarter despite continued softness in the domestic economy. For the second straight quarter, both our revenue and earnings per diluted share increased on a year-over-year basis. We achieved these results by continuing to execute our long-term strategic plan, which is centered on our ability to provide our customers with superior service at a fair price. The combination of our 99% on-time service and 0.1% claims ratio has created an unmatched value proposition in our industry, which continues to support our yield management initiatives as well as our ongoing ability to win market share.

Old Dominion Freight Line Total Revenue

The stock is down 15.7% since reporting and currently trades at $185.

Is now the time to buy Old Dominion Freight Line? 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 scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.6% since reporting. It currently trades at $38.08.

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.

U-Haul had the weakest performance against analyst estimates in the group. As expected, the stock is down 4.2% since the results and currently trades at $60.19.

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%. Looking more broadly, 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 1.4% since reporting and currently trades at $173.18.

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

Covenant Logistics (NASDAQ:CVLG)

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Covenant Logistics reported revenues of $278.8 million, up 4.5% year on year, in line with analysts' expectations. Looking more broadly, it was a very strong quarter for the company with an impressive beat of analysts' Freight revenue revenue estimates and a decent beat of analysts' earnings estimates.

The stock is up 10% since reporting and currently trades at $48.44.

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

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