Wrapping up Q3 earnings, we look at the numbers and key takeaways for the air freight and logistics stocks, including Expeditors (NYSE:EXPD) and its peers.
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 7 air freight and logistics stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 19.3% below.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Best Q3: Expeditors (NYSE:EXPD)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $3 billion, up 37% year on year. This print exceeded analysts’ expectations by 21.3%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ operating margin estimates.
“We have worked hard over this past year to gain additional volumes and grow our business by winning new customers and gaining additional business with current customers,” said Jeffrey S. Musser, President and Chief Executive Officer.
Expeditors pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $120.80.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
C.H. Robinson Worldwide (NASDAQ:CHRW)
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.64 billion, up 7% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts’ sales and EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $108.32.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: FedEx (NYSE:FDX)
Infamously taking its last $5,000 to a Las Vegas blackjack table to keep the company afloat, FedEx (NYSE:FDX) is a provider of parcel and cargo delivery services
FedEx reported revenues of $21.58 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a miss of analysts’ EBITDA estimates.
As expected, the stock is down 4% since the results and currently trades at $288.58.
Read our full analysis of FedEx’s results here.
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 $22.25 billion, up 5.6% year on year. This print met analysts’ expectations. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
United Parcel Service delivered the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $131.52.
Read our full, actionable report on United Parcel Service here, it’s free.
Air Transport Services (NASDAQ:ATSG)
Founded in 1980, Air Transport Services Group (NASDAQ:ATSG) provides air cargo transportation and logistics solutions.
Air Transport Services reported revenues of $471.3 million, down 9.9% year on year. This result came in 7.1% below analysts' expectations. It was a disappointing quarter as it also produced a miss of analysts’ earnings estimates.
Air Transport Services had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $22.07.
Read our full, actionable report on Air Transport Services here, it’s free.
Market Update
As expected, the Federal Reserve cut its policy rate by 25bps (a quarter of a percent) in November 2024 after Donald Trump triumphed in the US Presidential election. This marks the central bank's second easing of monetary policy after a large 50bps rate cut two months earlier. Going forward, the markets will debate whether these rate cuts (and more potential ones in 2025) are perfect timing to support the economy or a bit too late for a macro that has already cooled too much. Adding to the degree of difficulty is a new Republican administration that could make large changes to corporate taxes and prior efforts such as the Inflation Reduction Act.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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