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 GXO Logistics (NYSE:GXO) 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 7 air freight and logistics stocks we track reported an ok Q1; on average, revenues were in line with analyst consensus estimates. 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. 2024 has been a different story as mixed signals have led to market volatility, but air freight and logistics stocks have performed well, with the share prices up 10.3% on average since the previous earnings results.
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 $2.46 billion, up 5.7% year on year, exceeding analysts' expectations by 1.7%. Overall, it was a solid quarter for the company with an impressive beat of analysts' organic revenue estimates.
GXO Logistics achieved the fastest revenue growth of the whole group. The stock is up 5.4% since reporting and currently trades at $53.94.
Is now the time to buy GXO Logistics? Access our full analysis of the earnings results here, it's free.
Best Q1: C.H. Robinson Worldwide (NASDAQ:CHRW)
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQGS:CHRW) offers freight transportation and logistics services.
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.
C.H. Robinson Worldwide pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.5% since reporting. It currently trades at $87.50.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $999.5 million, down 13.3% year on year, falling short of analysts' expectations by 5.3%. It was a weak quarter for the company with a miss of analysts' volume estimates.
Hub Group posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.9% since the results and currently trades at $44.58.
Read our full analysis of Hub Group's results here.
Air Transport Services (NASDAQ:ATSG)
Founded in 1980, Air Transport Services Group (NASDAQ:ATSG) provides air cargo transportation and logistics solutions.
Air Transport Services reported revenues of $488.6 million, down 2.5% year on year, surpassing analysts' expectations by 1.8%. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is up 12.9% since reporting and currently trades at $14.92.
Read our full, actionable report on Air Transport Services here, it's free.
FedEx (NYSE:FDX)
Infamously taking its last $5,000 to a Las Vegas blackjack table to keep the company afloat, FedEx (NYSE:FDX) is a provider of parcel and cargo delivery services
FedEx reported revenues of $22.11 billion, flat year on year, in line with analysts' expectations. Revenue aside, it was an ok quarter for the company with a narrow beat of analysts' earnings estimates.
The stock is up 19.4% since reporting and currently trades at $306.
Read our full, actionable report on FedEx here, it's free.
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