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Air Freight and Logistics Stocks Q1 Results: Benchmarking Expeditors (NYSE:EXPD)


Adam Hejl /
2024/07/05 6:21 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Expeditors (NYSE:EXPD) and its peers.

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 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, but air freight and logistics stocks have shown resilience, with share prices up 6.7% on average since the previous earnings results.

Weakest Q1: Expeditors (NYSE:EXPD)

Founded in Seattle, Expeditors (NYSE:EXPD) specializes in global logistics, offering transportation, supply chain, and distribution services.

Expeditors reported revenues of $2.21 billion, down 14.9% year on year, falling short of analysts' expectations by 0.6%. It was a weak quarter for the company, with a miss of analysts' Airfreight revenue estimates.

“Air tonnage and ocean volumes increased when compared to a sluggish first quarter a year ago and breaking from a general downward slide of more than a year,” said Jeffrey S. Musser, President and Chief Executive Officer.

Expeditors Total Revenue

Expeditors delivered the slowest revenue growth of the whole group. The stock is up 7% since the results and currently trades at $123.85.

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

Best Q1: C.H. Robinson Worldwide (NASDAQ:CHRW)

Originally a wholesale produce brokerage house, C.H. Robinson (NASDAQ:CHRW) is a global logistics company providing transportation and supply chain solutions.

C.H. Robinson Worldwide reported revenues of $4.41 billion, down 4.3% year on year, outperforming analysts' expectations by 3.1%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' Global Forwarding revenue estimates.

C.H. Robinson Worldwide Total Revenue

C.H. Robinson Worldwide delivered the biggest analyst estimates beat among its peers. The stock is up 21.5% since the results and currently trades at $87.51.

Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it's free.

FedEx (NYSE:FDX)

Founded by a former Marine pilot, FedEx (NYSE:FDX) provides transportation, e-commerce, and business services to companies and individuals.

FedEx reported revenues of $22.11 billion, flat year on year, in line with analysts' expectations. It was an ok quarter for the company, with revenue and EPS exceeding analysts' estimates.

The stock is up 14.1% since the results and currently trades at $292.61.

Read our full analysis of FedEx's results here.

United Parcel Service (NYSE:UPS)

Started using bicycles for delivery, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.

United Parcel Service reported revenues of $21.71 billion, down 5.3% year on year, falling short of analysts' expectations by 1%. It was a mixed quarter for the company, with some shareholders hoping for a better result.

The stock is down 6.5% since the results and currently trades at $135.9.

Read our full, actionable report on United Parcel Service here, it's free.

GXO Logistics (NYSE:GXO)

Formed through a spinoff of XPO Logistics, GXO Logistics (NYSE:GXO) is a global provider of logistics solutions.

GXO Logistics reported revenues of $2.46 billion, up 5.7% year on year, surpassing analysts' expectations by 1.7%. It was a solid quarter for the company, with an impressive beat of analysts' organic revenue estimates.

GXO Logistics achieved the fastest revenue growth among its peers. The stock is down 3.5% since the results and currently trades at $49.39.

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

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