Reflecting On Air Freight and Logistics Stocks’ Q1 Earnings: United Parcel Service (NYSE:UPS)
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 United Parcel Service (NYSE:UPS).
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. 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 performed well, with the share prices up 13.8% on average since the previous earnings results.
United Parcel Service (NYSE:UPS)
Trademarking its recognizable UPS Brown color, 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%. Overall, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates.
“I want to thank all UPSers for their hard work and efforts,” said Carol Tomé, UPS chief executive officer.
The stock is up 1.4% since reporting and currently trades at $147.33.
Read our full report on United Parcel Service 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 achieved 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 had 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.
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.
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%. More broadly, it was a solid quarter for the company with an impressive beat of analysts' organic revenue estimates.
GXO Logistics pulled off 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.
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