Let’s dig into the relative performance of XPO (NYSE:XPO) and its peers as we unravel the now-completed Q4 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 15 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11% since the latest earnings results.
Best Q4: 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 $1.92 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mario Harik, chief executive officer of XPO, said, “We’re pleased to report a strong fourth quarter that caps a year of above-market earnings growth. Companywide, we delivered full-year increases of 27% in adjusted EBITDA and 31% in adjusted diluted EPS, compared with the prior year.
The stock is down 10.6% since reporting and currently trades at $122.
Is now the time to buy XPO? Access our full analysis of the earnings results 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 $1.00 billion, down 8.1% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.2% since reporting. It currently trades at $80.95.
Is now the time to buy ArcBest? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Avis Budget Group (NASDAQ:CAR)
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.
Avis Budget Group reported revenues of $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 10.2% since the results and currently trades at $80.60.
Read our full analysis of Avis Budget Group’s results here.
U-Haul (NYSE:UHAL)
Founded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities.
U-Haul reported revenues of $1.39 billion, up 3.7% year on year. This number topped analysts’ expectations by 3.1%. However, it was a mixed quarter as it produced a significant miss of analysts’ EPS estimates.
The stock is down 1.6% since reporting and currently trades at $70.39.
Read our full, actionable report on U-Haul here, it’s free.
Old Dominion Freight Line (NASDAQ:ODFL)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Old Dominion Freight Line reported revenues of $1.39 billion, down 7.3% year on year. This result beat analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates but sales volume in line with analysts’ estimates.
The stock is down 4.7% since reporting and currently trades at $175.
Read our full, actionable report on Old Dominion Freight Line here, it’s free.
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