Spotting Winners: GXO Logistics (NYSE:GXO) And Air Freight and Logistics Stocks In Q1
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 Q1. Today, we are looking at air freight and logistics stocks, starting with GXO Logistics (NYSE:GXO).
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 strong Q1. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 3.5% 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.
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 $2.98 billion, up 21.2% year on year. This print exceeded analysts' expectations by 1.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' adjusted operating income estimates.
GXO Logistics scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 4.4% since reporting and currently trades at $39.78.
Is now the time to buy GXO Logistics? Access our full analysis of the earnings results here, it's free.
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.67 billion, up 20.8% year on year, outperforming analysts' expectations by 3.6%. The business had a stunning quarter with an impressive beat of analysts' EBITDA estimates.
Expeditors delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $113.47.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it's free.
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 $915.2 million, down 8.4% year on year, falling short of analysts' expectations by 5.7%. It was a softer quarter as it posted full-year revenue guidance missing analysts' expectations.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2.6% since the results and currently trades at $34.
Read our full analysis of Hub Group's results here.
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. This print surpassed analysts' expectations by 0.9%. Aside from that, it was a slower quarter as it logged full-year EPS guidance missing analysts' expectations.
The stock is down 12.2% since reporting and currently trades at $216.10.
Read our full, actionable report on FedEx here, it's free.
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 $4.05 billion, down 8.3% year on year. This number missed analysts' expectations by 4.9%. More broadly, it was actually a strong quarter as it recorded a solid beat of analysts' EBITDA estimates.
The stock is up 8.6% since reporting and currently trades at $96.80.
Read our full, actionable report on C.H. Robinson Worldwide here, it's free.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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.
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