Air Freight and Logistics Stocks Q2 Results: Benchmarking Air Transport Services (NASDAQ:ATSG)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Air Transport Services (NASDAQ:ATSG) and the rest of the air freight and logistics stocks fared in Q2.
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 a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, air freight and logistics stocks have held steady amidst all this with share prices up 4.5% on average since the latest 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 $491.5 million, down 7.1% year on year. This print fell short of analysts’ expectations by 4.3%. Overall, it was a slower quarter for the company with a miss of analysts’ Cargo Aircraft Management revenue estimates.
Air Transport Services delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 15.8% since reporting and currently trades at $15.35.
Read our full report on Air Transport Services here, it’s free.
Best Q2: C.H. Robinson Worldwide (NASDAQ:CHRW)
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.48 billion, up 1.4% year on year, in line with analysts’ expectations. The business had a strong quarter with an impressive beat of analysts’ operating margin and earnings estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $100.31.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $986.5 million, down 5.2% year on year, falling short of analysts’ expectations by 9.7%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and a miss of analysts’ volume estimates.
Hub Group delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 3.2% since the results and currently trades at $44.81.
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 $2.85 billion, up 18.9% year on year. This result topped analysts’ expectations by 6%. It was a strong quarter as it also logged a decent beat of analysts’ operating margin and organic revenue estimates.
GXO Logistics pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 3.5% since reporting and currently trades at $51.06.
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. This result met analysts’ expectations. It was a satisfactory quarter as it also logged a decent beat of analysts’ operating margin estimates.
The stock is up 14% since reporting and currently trades at $292.30.
Read our full, actionable report on FedEx here, it’s free.
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