Q2 Rundown: Knight-Swift Transportation (NYSE:KNX) Vs Other Ground Transportation Stocks
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the ground transportation industry, including Knight-Swift Transportation (NYSE:KNX) 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%.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
Knight-Swift Transportation (NYSE:KNX)
Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services.
Knight-Swift Transportation reported revenues of $1.85 billion, up 18.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ earnings estimates.
Knight-Swift Transportation scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 6.6% since reporting and currently trades at $52.21.
Read our full report on Knight-Swift Transportation 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. The business had an exceptional quarter 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 3.7% since reporting. It currently trades at $12.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
Hertz delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.3% since the results and currently trades at $3.30.
Read our full analysis of Hertz’s results here.
XPO (NYSE:XPO)
Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.
XPO reported revenues of $2.08 billion, up 8.5% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a decent beat of analysts’ earnings and operating margin estimates.
The stock is down 2.1% since reporting and currently trades at $112.50.
Read our full, actionable report on XPO here, it’s free.
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 number was in line with analysts’ expectations. More broadly, it was a slower quarter as it produced a miss of analysts’ earnings estimates.
The stock is up 17.9% since reporting and currently trades at $74.62.
Read our full, actionable report on U-Haul here, it’s free.
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