Looking back on ground transportation stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Covenant Logistics (NYSE: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 Q1. As a group, revenues missed analysts’ consensus estimates by 2.2%.
Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results.
Covenant Logistics (NYSE: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 $269.4 million, down 3.4% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a disappointing quarter for the company with a miss of analysts’ Freight revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Chairman and Chief Executive Officer, David R. Parker, commented: “Our first quarter earnings were $0.24 per diluted share or $0.32 per diluted share on a non-GAAP adjusted basis. The decrease in adjusted earnings per share compared with the first quarter of 2024 resulted primarily from sub-par equipment utilization due to prolonged inclement weather conditions and avian influenza outbreaks, which were especially severe this year. Overall, we remain confident in Covenant’s strategy, direction, and market position and our team’s ability to execute on the factors within our control."
The stock is up 21.8% since reporting and currently trades at $22.89.
Read our full report on Covenant Logistics here, it’s free.
Best Q1: Schneider (NYSE:SNDR)
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $24.14.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Universal Logistics (NASDAQ:ULH)
Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
Universal Logistics reported revenues of $382.4 million, down 22.3% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Universal Logistics delivered the slowest revenue growth in the group. As expected, the stock is down 8.2% since the results and currently trades at $24.69.
Read our full analysis of Universal Logistics’s results here.
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 $219.4 million, down 18.8% year on year. This print lagged analysts' expectations by 9%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 12.1% since reporting and currently trades at $8.79.
Read our full, actionable report on Heartland Express 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 $1.37 billion, down 5.8% year on year. This result met analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates.
The stock is up 9.4% since reporting and currently trades at $166.40.
Read our full, actionable report on Old Dominion Freight Line here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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