Wrapping up Q2 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including XPO (NYSE: XPO) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation 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 16 ground transportation stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.

While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.

XPO (NYSE: XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $2.08 billion, flat year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with and a solid beat of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 2% since reporting and currently trades at $134.99.

Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free.

Best Q2: Werner (NASDAQ: WERN)

Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $753.1 million, down 1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $28.32.

Is now the time to buy Werner? 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 and slowest revenue growth in the group. As expected, the stock is down 3.1% since the results and currently trades at $8.40.

Read our full analysis of Heartland Express’s results here.

Avis Budget Group (NASDAQ: CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ: CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $3.04 billion, flat year on year. This number surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 23.3% since reporting and currently trades at $156.

Read our full, actionable report on Avis Budget Group 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 topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.

The stock is up 2.8% since reporting and currently trades at $319.50.

Read our full, actionable report on Saia 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.

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