Air Freight and Logistics Stocks Q1 Highlights: Air Transport Services (NASDAQ:ATSG)
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how air freight and logistics stocks fared in Q1, starting with Air Transport Services (NASDAQ:ATSG).
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. The start of 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 13.8% on average since the previous earnings results.
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, exceeding analysts' expectations by 1.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
Joe Hete, chairman and chief executive officer of ATSG, said, "I am proud of the focus and execution of the entire ATSG team as we continue to navigate a challenging market. The changes to our Amazon arrangement announced earlier today are a testament to the high quality of service we provide to our customer. Our priorities remain safe operations, customer satisfaction, cost control, and disciplined capital allocation. We completed the conversion and delivery of four 767-300 freighters to customers in the quarter. Additionally, we have customer interest in other aircraft we have available for lease. We are focused on generating positive cash flow in 2024 and are off to a strong start in the first quarter, having generated $15 million in Free Cash Flow*."
The stock is up 12.9% since reporting and currently trades at $14.92.
Is now the time to buy Air Transport Services? 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 and a solid beat of analysts' Global Forwarding revenue estimates.
C.H. Robinson Worldwide scored 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.
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, surpassing analysts' expectations by 1.7%. Zooming out, it was a solid quarter for the company with an impressive beat of analysts' organic revenue estimates.
GXO Logistics delivered the fastest revenue growth among its peers. The stock is up 5.4% since reporting and currently trades at $53.94.
Read our full, actionable report on GXO Logistics 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. Taking a step back, 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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