As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including U-Haul (NYSE: UHAL) 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 5.4% on average since the latest earnings results.
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 $1.23 billion, up 12.5% year on year. This print exceeded analysts’ expectations by 6.7%. Despite the top-line beat, it was still a mixed quarter for the company.
“We are seeing the high prices we paid for fleet replacements over the last thirty months impact the income statement. Reduced gains on the sale of rental equipment and increased fleet depreciation expense decreased earnings by nearly $260 million for the year compared to fiscal 2024. We have increased depreciation further to recognize this expense in the current period,” stated Joe Shoen, chairman of U-Haul Holding Company.
U-Haul pulled off the biggest analyst estimates beat of the whole group. The stock is up 1.8% since reporting and currently trades at $63.44.
Is now the time to buy U-Haul? Access our full analysis of the earnings results 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 an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 11.3% since reporting. It currently trades at $23.91.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Werner (NASDAQ: WERN)
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Werner reported revenues of $712.1 million, down 7.4% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ Logistics revenue estimates.
As expected, the stock is down 2.9% since the results and currently trades at $26.84.
Read our full analysis of Werner’s results here.
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 $2.43 billion, down 4.7% year on year. This result came in 2.9% below analysts' expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 16% since reporting and currently trades at $116.41.
Read our full, actionable report on Avis Budget Group 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 $3.13 billion, up 1.1% year on year. This number met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance beating analysts’ expectations.
The stock is up 9.1% since reporting and currently trades at $150.35.
Read our full, actionable report on Ryder 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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