Q2 Earnings Highs And Lows: CSX (NASDAQ:CSX) Vs The Rest Of The Transportation and Logistics Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at CSX (NASDAQ:CSX) and its peers.
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.
After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.
Transportation and Logistics stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
CSX (NASDAQ:CSX)
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.
CSX reported revenues of $3.70 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ operating margin estimates.
Interestingly, the stock is up 4.6% since reporting and currently trades at $34.53.
Is now the time to buy CSX? Access our full analysis of the earnings results 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%. The business had an incredible quarter 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 1.4% since reporting. It currently trades at $6.63.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 23% since the results and currently trades at $3.15.
Read our full analysis of Hertz’s results here.
U-Haul (NYSE:UHAL)
Founded by a husband and wife, U-Haul (NYSE:UHAL) offers truck and trailer rentals and self storage units.
U-Haul reported revenues of $1.55 billion, flat year on year. This print was in line with analysts’ expectations. Taking a step back, it was a softer quarter as it produced a miss of analysts’ earnings estimates.
The stock is up 17.9% since reporting and currently trades at $74.57.
Read our full, actionable report on U-Haul here, it’s free.
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 $930 million, down 3.4% year on year. This print was in line with analysts’ expectations. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ volume and operating margin estimates.
The stock is down 6.1% since reporting and currently trades at $28.06.
Read our full, actionable report on RXO here, it’s free.
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