Q2 Earnings Highs And Lows: Landstar (NASDAQ:LSTR) Vs The Rest Of The Ground Transportation Stocks

Let’s dig into the relative performance of Landstar (NASDAQ:LSTR) and its peers as we unravel the now-completed Q2 ground transportation earnings season.

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 16 ground transportation stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1%.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.

Landstar (NASDAQ:LSTR)

Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.

Landstar reported revenues of $1.23 billion, down 10.7% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a slower quarter for the company with a miss of analysts’ revenue estimates.

Landstar delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 5.8% since reporting and currently trades at $182.56.

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

Best Q2: Heartland Express (NASDAQ:HTLD)

Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico.

Heartland Express reported revenues of $274.8 million, down 10.3% year on year, in line with analysts’ expectations. It was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.38.

Is now the time to buy Heartland Express? 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.

Hertz posted the weakest performance against analyst estimates in the group. As expected, the stock is down 25.9% since the results and currently trades at $3.03.

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%. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

The stock is down 1.5% since reporting and currently trades at $82.67.

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

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 $3.18 billion, up 10.3% year on year, falling short of analysts’ expectations by 1.9%. Taking a step back, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a miss of analysts’ revenue estimates.

The stock is up 11.9% since reporting and currently trades at $145.24.

Read our full, actionable report on Ryder here, it’s free.

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