Q2 Earnings Outperformers: Covenant Logistics (NASDAQ:CVLG) And The Rest Of The Ground Transportation Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including Covenant Logistics (NASDAQ:CVLG) and its peers.

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 4.3% since the latest earnings results.

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. This print fell short of analysts’ expectations by 4%, but it was still a strong quarter for the company with a solid beat of analysts’ operating margin estimates.

Chairman and Chief Executive Officer, David R. Parker, commented: “We are pleased to report second quarter earnings of $0.88 per diluted share and non-GAAP adjusted earnings of $1.04 per diluted share.

Interestingly, the stock is up 3.9% since reporting and currently trades at $52.88.

Is now the time to buy Covenant Logistics? 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 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.

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, in line with analysts’ expectations. More broadly, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

The stock is up 10.5% since reporting and currently trades at $69.93.

Read our full, actionable report on U-Haul here, it’s free.

ArcBest (NASDAQ:ARCB)

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

ArcBest reported revenues of $1.08 billion, down 2.3% year on year, surpassing analysts’ expectations by 1.9%. Taking a step back, it was a weaker quarter for the company with a miss of analysts’ operating margin estimates.

ArcBest achieved the biggest analyst estimates beat among its peers. The stock is down 12.9% since reporting and currently trades at $105.81.

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

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