Looking back on air freight and logistics stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including C.H. Robinson Worldwide (NASDAQ:CHRW) 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 2.6% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates.
"I’m pleased with our third quarter results that reflect continued improvement in our execution, as we continue to deploy our new operating model. We are raising the bar, even in a historically prolonged freight recession, with strong execution and disciplined volume growth across divisions while delivering exceptional service for our customers and carriers," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman.
Interestingly, the stock is up 2.6% since reporting and currently trades at $112.51.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 21.3%. The business had an incredible quarter with an impressive beat of analysts’ adjusted operating income estimates.
Expeditors delivered the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $120.81.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $21.58 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ sales and EBITDA estimates.
As expected, the stock is down 3.7% since the results and currently trades at $289.51.
Read our full analysis of FedEx’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 $3.16 billion, up 27.8% year on year. This print topped analysts’ expectations by 5.3%. Zooming out, it was a slower quarter as it logged revenue guidance for next quarter missing analysts’ expectations.
The stock is up 4% since reporting and currently trades at $60.99.
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 $22.25 billion, up 5.6% year on year. This result topped analysts’ expectations by 0.5%. It was a strong quarter as it also recorded 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 $132.64.
Read our full, actionable report on United Parcel Service here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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