Ground Transportation Stocks Q2 Results: Benchmarking Old Dominion Freight Line (NASDAQ:ODFL)
Let’s dig into the relative performance of Old Dominion Freight Line (NASDAQ:ODFL) 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%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results.
Old Dominion Freight Line (NASDAQ:ODFL)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQGS:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Old Dominion Freight Line reported revenues of $1.50 billion, up 6.1% 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.
Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, “Old Dominion produced another quarter of profitable growth despite continued softness in the domestic economy. This was our third consecutive quarter with growth in both revenue and earnings per diluted share, and it was the first time in over a year where our earnings increased by double digits. These results were made possible by the dedication of the OD Family of employees, who continue to execute on our long-term strategic plan that is centered on our ability to provide our customers with superior service at a fair price. Consistently delivering best-in-class service also continues to support our yield-management strategy and ongoing ability to win market share.
Interestingly, the stock is up 1.5% since reporting and currently trades at $196.81.
Is now the time to buy Old Dominion Freight Line? Access our full analysis of the earnings results 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 very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.4% since reporting. It currently trades at $12.29.
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 and volume estimates.
Hertz had the weakest performance against analyst estimates in the group. As expected, the stock is down 15.7% since the results and currently trades at $3.45.
Read our full analysis of Hertz’s results here.
Covenant Logistics (NASDAQ:CVLG)
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Covenant Logistics reported revenues of $287.5 million, up 4.9% year on year, falling short of analysts’ expectations by 4%. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts’ Freight revenue revenue estimates.
The stock is up 1.8% since reporting and currently trades at $51.80.
Read our full, actionable report on Covenant Logistics 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 weaker quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 5.4% since reporting and currently trades at $136.76.
Read our full, actionable report on Ryder here, it’s free.
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