Looking back on air freight and logistics stocks’ Q4 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 6 air freight and logistics stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% 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 $4.18 billion, flat year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a slower quarter for the company with a miss of analysts’ North American surface transportation revenue estimates and a slight miss of analysts’ EBITDA estimates.
"We’ve talked extensively over the past year about our new Robinson operating model and the disciplined execution that the model is enabling, as well as how we’re leveraging our industry leading talent and technology to raise the bar in logistics," said President and Chief Executive Officer, Dave Bozeman.
C.H. Robinson Worldwide delivered the weakest performance against analyst estimates of the whole group. The stock is down 4.9% since reporting and currently trades at $102.71.
Read our full report on C.H. Robinson Worldwide here, it’s free.
Best Q4: Expeditors (NYSE:EXPD)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.95 billion, up 29.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Expeditors scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $123.18.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 1.7% since the results and currently trades at $241.97.
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 $25.3 billion, up 1.5% year on year. This print met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations significantly.
United Parcel Service had the weakest full-year guidance update among its peers. The stock is down 18.5% since reporting and currently trades at $108.99.
Read our full, actionable report on United Parcel Service here, it’s free.
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 $973.5 million, down 1.2% year on year. This number came in 3.2% below analysts' expectations. It was a slower quarter as it also logged full-year EPS guidance missing analysts’ expectations.
Hub Group scored the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 15% since reporting and currently trades at $36.74.
Read our full, actionable report on Hub Group here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.