As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at transportation and logistics stocks, starting with Norfolk Southern (NYSE:NSC).
The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.
The 30 transportation and logistics stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.9% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Norfolk Southern (NYSE:NSC)
Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE:NSC) is a freight transportation company operating a major railroad network across the eastern United States.
Norfolk Southern reported revenues of $3.11 billion, up 2.2% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with a slight miss of analysts’ EBITDA estimates and sales volume in line with analysts’ estimates.
Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $273.45.
Read our full report on Norfolk Southern here, it’s free.
Best Q2: Matson (NYSE:MATX)
Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $830.5 million, down 2% year on year, outperforming analysts’ expectations by 2.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2% since reporting. It currently trades at $104.75.
Is now the time to buy Matson? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $210.4 million, down 23.4% year on year, falling short of analysts’ expectations by 10.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Heartland Express delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $8.70.
Read our full analysis of Heartland Express’s results here.
Knight-Swift Transportation (NYSE:KNX)
Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services.
Knight-Swift Transportation reported revenues of $1.86 billion, flat year on year. This print met analysts’ expectations. Overall, it was a strong quarter as it also logged a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 6% since reporting and currently trades at $42.90.
Read our full, actionable report on Knight-Swift Transportation here, it’s free.
Saia (NASDAQ:SAIA)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Saia reported revenues of $817.1 million, flat year on year. This result surpassed analysts’ expectations by 1.2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 1.5% since reporting and currently trades at $306.24.
Read our full, actionable report on Saia 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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