Transportation and Logistics Stocks Q2 Recap: Benchmarking Union Pacific (NYSE:UNP)

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 Union Pacific (NYSE:UNP) and the best and worst performers in the transportation and logistics industry.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.

The 31 transportation and logistics stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ 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. This year has been a different story as mixed inflation signals have led to market volatility. However, transportation and logistics stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

Union Pacific (NYSE:UNP)

Part of the transcontinental railroad project, Union Pacific (NYSE:UNP) is a freight transportation company that operates a major railroad network.

Union Pacific reported revenues of $6.01 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ volume estimates.

“Our second quarter performance demonstrates the team’s ability to deliver strong results,” said Jim Vena, Union Pacific Chief Executive Officer.

Interestingly, the stock is up 6.8% since reporting and currently trades at $253.70.

Read our full report on Union Pacific here, it’s free.

Best Q2: Pangaea (NASDAQ:PANL)

Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Pangaea reported revenues of $131.5 million, up 11.4% year on year, outperforming analysts’ expectations by 17%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

Pangaea achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4% since reporting. It currently trades at $6.80.

Is now the time to buy Pangaea? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $2.35 billion, down 3.4% year on year, falling short of analysts’ expectations by 4.3%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

As expected, the stock is down 20.8% since the results and currently trades at $3.24.

Read our full analysis of Hertz’s results here.

Avis Budget Group (NASDAQ:CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $3.05 billion, down 2.4% year on year, falling short of analysts’ expectations by 2.8%. More broadly, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

The stock is down 2.2% since reporting and currently trades at $82.08.

Read our full, actionable report on Avis Budget Group here, it’s free.

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 $491.5 million, down 7.1% year on year, falling short of analysts’ expectations by 4.3%. Zooming out, it was a slower quarter for the company with a miss of analysts’ Cargo Aircraft Management revenue estimates.

The stock is up 23% since reporting and currently trades at $16.31.

Read our full, actionable report on Air Transport Services here, it’s free.

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