As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Ryder (NYSE:R) and its peers.
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 a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.
Ryder (NYSE:R)
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Ryder reported revenues of $3.17 billion, flat year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.
Ryder delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 1.9% since reporting and currently trades at $186.36.
Is now the time to buy Ryder? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Hertz (NASDAQ:HTZ)
Started with a dozen Model T Fords, Hertz (NASDAQ:HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Hertz scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $5.40.
Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: U-Haul (NYSE:UHAL)
Founded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities.
U-Haul reported revenues of $1.72 billion, up 3.7% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 4.7% since the results and currently trades at $50.89.
Read our full analysis of U-Haul’s results here.
Saia (NASDAQ:SAIA)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Saia reported revenues of $839.6 million, flat year on year. This number beat analysts’ expectations by 1%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 18.9% since reporting and currently trades at $329.80.
Read our full, actionable report on Saia here, it’s free for active Edge members.
RXO (NYSE:RXO)
With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
RXO reported revenues of $1.42 billion, up 36.6% year on year. This print met analysts’ expectations. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
RXO pulled off the fastest revenue growth among its peers. The stock is down 17.9% since reporting and currently trades at $14.47.
Read our full, actionable report on RXO here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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