Latest news with #UniversalLogistics
Yahoo
a day ago
- Business
- Yahoo
Universal Logistics bets on specialized freight in soft market
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Universal Logistics is betting big on specialized freight, as hauling components for the wind business in the energy sector shows promise in an otherwise soft freight market, several executives said in a recent Q2 earnings call. 'Our focus on specialized freight, including our wind energy business, continues to support more resilient margins even in a depressed market,' CEO Tim Phillips said. 'In the current freight environment, Universal Logistics' revenue decreased by 14.8% year over year to $393.8 million as trucking volumes sank 22.6% during the quarter, according to its earnings report released July 24. The company has been investing in its wind franchise where it hauls blades, towers and components, CFO Jude Marcus Beres said in the call. The strong demand in wind is a continued trend the company highlighted back in Q1, with the CEO saying its heavy haul wind operations were a strategic differentiator for its trucking segment. Universal Logistics' revenue per load, excluding fuel surcharges, increased by more than 24% YOY in Q1, Phillips said, labeling it a sign that the company's strategy of emphasizing specialized high-yield freight is gaining traction. Growth in demand for wind energy-related transport hauls seems to be a growing trend among other companies, with Landstar System also reporting its heavy haul service being positive for the company. Landstar's CEO said the demand for infrastructure related to AI, such as data centers, along with wind energy, are contributing to the need for flatbed and bulk trucking services. Even with strong demand, Universal Logistics' wind franchise was negatively impacted in the first half of the year due to tariffs. 'A lot of those components are imported but I think the cadence that we're seeing in the back half of the year should make up for the shortfall in that business that we experienced in the first half,' Beres said. Most of the headwinds in the wind business will be manageable and start to improve in the coming quarters, Beres said, due in part to clarity the company gained with the passing of the 'One Big Beautiful Bill.' The tax package from Congress enhances multiple areas for trucking businesses and tax-reduction benefits, according to some trucking groups. Looking ahead, Universal Logistics plans to expand into other heavy haul opportunities to support various industries, Phillips said. 'We're pretty bullish on the specialized and we'll continue to focus on building that product out,' he said. Recommended Reading Universal Logistics revenues fall amid 31% drop in trucking volumes
Yahoo
25-07-2025
- Business
- Yahoo
Why Universal Logistics (ULH) Stock Is Up Today
What Happened? Shares of transportation and logistics solutions provider Universal Logistics (NASDAQ:ULH) jumped 9.1% in the afternoon session after the company reported second-quarter financial results that, while missing analyst estimates, were in line with its prior guidance. The logistics provider posted total operating revenues of $393.8 million, a 15% decrease from the prior year, and adjusted earnings per share of $0.32, a 73% drop. Both metrics fell short of analyst forecasts. However, Universal's CEO commented that the results "were broadly in-line with our previously guided expectations." The stock had declined 39% over the past six months, suggesting that investors may have already priced in the weak performance. The announcement of a quarterly cash dividend of $0.105 per share may have also provided some support for the shares. Is now the time to buy Universal Logistics? Access our full analysis report here, it's free. What Is The Market Telling Us Universal Logistics's shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 12.4% on the news that the company reported weak third-quarter earnings results, with its revenue falling short of Wall Street's estimates, sending shares lower. Overall, this quarter could have been better. Universal Logistics is down 31.9% since the beginning of the year, and at $29.78 per share, it is trading 43% below its 52-week high of $52.28 from November 2024. Investors who bought $1,000 worth of Universal Logistics's shares 5 years ago would now be looking at an investment worth $1,667. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
25-07-2025
- Business
- Yahoo
Universal Logistics sees impact of tariffs on Q2 revenue, earnings
Transportation provider Universal Logistics Holdings reported a decline in second quarter earnings and revenue due to lower intermodal volumes and slow demand, company officials said. Universal Logistics Holdings released its second-quarter results after the market closed on Thursday and held an earnings call Friday. The company reported second quarter revenue of $393.8 million, a 15% year-over-year decrease. Adjusted earnings per share decreased 73% year-over-year to 32 cents during the quarter. 'The second quarter of 2025 remained a challenging environment across the transportation and logistics industry,' CEO Tim Phillips said. Universal Logistics (Nasdaq: ULH) is a Warren, Michigan-based truckload transportation, intermodal and logistics provider. The company provides services across the U.S, Mexico, Canada and Colombia and has more than 10,000 employees. The company missed Wall Street analysts' forecasts for revenue of $398.5 million and earnings per share of 34 cents in the second quarter. 'The contract logistics segment remains the cornerstone of our results,' Phillips said. 'Revenues were $260.6 million, down slightly from Q2 of last year. The integration of Parsec continues to progress smoothly and it contributed $55 million in revenue during the quarter.' Universal Logistics acquired rail terminal operator Parsec for $193.6 million in September. Cincinnati-based Parsec provides terminal management services at 20 rail yards across North America. The company specializes in container lift services for Class I, regional and short-line railroads. Universal Logistics currently operates 87 value-added programs, including 20 rail terminals, up from 68 programs a year ago. 'We are confident in the stability and long-term growth prospects of this segment, especially as we integrate our expanded footprint and pursue new contract opportunities,' Phillips said. In the company's intermodal segment, revenue decreased 13.5% year-over-year in the second quarter to $68.9 million. During the second quarter, Universal saw a 12.9% year-over-year decrease in intermodal load volumes, caused by less imports, Phillips said. 'I think the tariffs did have an impact on our intermodal division and imports coming into the country,' Phillips said. 'The way I saw it is we saw a general fall off in some of our normal volumes somewhere in the middle to end of May, and that lasted generally through the month of June. It appears that that fall off was specifically highlighted from discount retailers that had a large presence of Chinese sourcing.' The trucking segment saw a 29.9% year-over-year decrease in second quarter revenue at $45.9 million. On a year-over-year basis, trucking load volumes declined 22.6%, and the average operating revenue per load, excluding fuel surcharges, declined 8.9% to $1,927. Company officials said there has been less demand for raw materials, along with goods such as wind turbines, that has contributed to softer demand in the trucking market. 'We haul blades, we haul towers, and we haul components. That business was impacted negatively in the first half of the year, primarily because of tariffs,' CFO Jude Beres said. 'A lot of those components are imported, but I think the cadence that we're seeing in the back half of the year should make up for the shortfall in that business that we experienced in the first half. And then of course, we have a pretty clear runway now with the one big beautiful bill on what's going to happen for the next five years through 2030. I think most of the headwinds in the wind side of the business are going to be manageable and start to improve in the coming quarters.' The post Universal Logistics sees impact of tariffs on Q2 revenue, earnings appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
Universal Logistics (ULH) To Report Earnings Tomorrow: Here Is What To Expect
Transportation and logistics solutions provider Universal Logistics (NASDAQ:ULH) will be reporting results this Thursday after market hours. Here's what to look for. Universal Logistics missed analysts' revenue expectations by 4.5% last quarter, reporting revenues of $382.4 million, down 22.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' EBITDA estimates and a significant miss of analysts' EPS estimates. Is Universal Logistics a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Universal Logistics's revenue to decline 13.8% year on year to $398.5 million, a reversal from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Logistics has missed Wall Street's revenue estimates three times over the last two years. Looking at Universal Logistics's peers in the transportation and logistics segment, only FedEx has reported results so far. It beat analysts' revenue estimates by 1.9% and delivered flat year-on-year revenue. The stock was down 3.2% on the results. Read our full analysis of FedEx's earnings results here. There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 7.9% on average over the last month. Universal Logistics is up 2.5% during the same time and is heading into earnings with an average analyst price target of $29 (compared to the current share price of $26.20). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
26-06-2025
- Business
- Yahoo
Ground Transportation Stocks Q1 Results: Benchmarking Universal Logistics (NASDAQ:ULH)
Looking back on ground transportation stocks' Q1 earnings, we examine this quarter's best and worst performers, including Universal Logistics (NASDAQ:ULH) 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 slower Q1. As a group, revenues missed analysts' consensus estimates by 2.2%. Luckily, ground transportation stocks have performed well with share prices up 11% on average since the latest earnings results. Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia. Universal Logistics reported revenues of $382.4 million, down 22.3% year on year. This print fell short of analysts' expectations by 4.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' EBITDA and EPS estimates. "Our performance in the first quarter reflects the sluggish start to 2025," stated Universal's CEO Tim Phillips. Universal Logistics delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 6.5% since reporting and currently trades at $25.16. Read our full report on Universal Logistics here, it's free. Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders. Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts' expectations. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 11.4% since reporting. It currently trades at $23.92. Is now the time to buy Schneider? Access our full analysis of the earnings results here, it's free. 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 $219.4 million, down 18.8% year on year, falling short of analysts' expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Interestingly, the stock is up 10.5% since the results and currently trades at $8.66. Read our full analysis of Heartland Express's results here. Started with a dozen Model T Fords, Hertz (NASDAQ:HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers. Hertz reported revenues of $1.81 billion, down 12.8% year on year. This print missed analysts' expectations by 10.5%. It was a softer quarter as it also logged a significant miss of analysts' adjusted operating income and EPS estimates. Hertz had the weakest performance against analyst estimates among its peers. The stock is up 3.5% since reporting and currently trades at $7.21. Read our full, actionable report on Hertz here, it's free. As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses. Ryder reported revenues of $3.13 billion, up 1.1% year on year. This result was in line with analysts' expectations. It was a strong quarter as it also recorded a solid beat of analysts' adjusted operating income estimates and full-year EPS guidance beating analysts' expectations. The stock is up 13.1% since reporting and currently trades at $155.88. Read our full, actionable report on Ryder here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
