The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how air freight and logistics stocks fared in Q1, starting with FedEx (NYSE: FDX).
The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics 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 6 air freight and logistics stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 3.6% below.
In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.
FedEx (NYSE: FDX)
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
FedEx reported revenues of $22.16 billion, up 1.9% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.
The stock is down 4.5% since reporting and currently trades at $235.
Read our full report on FedEx here, it’s free.
Best Q1: Expeditors (NYSE: EXPD)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.67 billion, up 20.8% year on year, outperforming analysts’ expectations by 3.6%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
Expeditors pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $116.08.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Hub Group (NASDAQ: HUBG)
Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Hub Group reported revenues of $915.2 million, down 8.4% year on year, falling short of analysts’ expectations by 5.7%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 8.4% since the results and currently trades at $35.91.
Read our full analysis of Hub Group’s results here.
GXO Logistics (NYSE: GXO)
With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of $2.98 billion, up 21.2% year on year. This result beat analysts’ expectations by 1.4%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.
GXO Logistics pulled off the fastest revenue growth among its peers. The stock is up 8.9% since reporting and currently trades at $41.50.
Read our full, actionable report on GXO Logistics here, it’s free.
United Parcel Service (NYSE: UPS)
Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $21.55 billion, flat year on year. This number surpassed analysts’ expectations by 2.1%. It was a very strong quarter as it also logged a solid beat of analysts’ sales volume and EBITDA estimates.
The stock is up 4.6% since reporting and currently trades at $101.58.
Read our full, actionable report on United Parcel Service here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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