Air Freight and Logistics Stocks Q2 In Review: C.H. Robinson Worldwide (NASDAQ:CHRW) Vs Peers
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how C.H. Robinson Worldwide (NASDAQ:CHRW) and the rest of the air freight and logistics stocks fared in Q2.
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 Q2. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, air freight and logistics stocks have held steady amidst all this with share prices up 4.1% 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 (NASDAQGS:CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.48 billion, up 1.4% year on year. This print was in line with analysts’ expectations, and overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.
"Our second quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman.
Interestingly, the stock is up 13.8% since reporting and currently trades at $101.33.
Is now the time to buy C.H. Robinson Worldwide? Access our full analysis of the earnings results here, it’s free.
Best Q2: Expeditors (NYSE:EXPD)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.44 billion, up 8.9% year on year, outperforming analysts’ expectations by 5.4%. It was a strong quarter for the company with an impressive beat of analysts’ Airfreight revenue estimates.
The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $123.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $986.5 million, down 5.2% year on year, falling short of analysts’ expectations by 9.7%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ volume estimates.
Hub Group posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 7% since the results and currently trades at $43.03.
Read our full analysis of Hub Group’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 $2.85 billion, up 18.9% year on year, surpassing analysts’ expectations by 6%. Taking a step back, it was a mixed quarter for the company with a miss of analysts’ earnings estimates.
GXO Logistics achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $49.53.
Read our full, actionable report on GXO Logistics here, it’s free.
FedEx (NYSE:FDX)
Infamously taking its last $5,000 to a Las Vegas blackjack table to keep the company afloat, FedEx (NYSE:FDX) is a provider of parcel and cargo delivery services
FedEx reported revenues of $22.11 billion, flat year on year, in line with analysts’ expectations. Revenue aside, it was an ok quarter for the company with EPS in line with expectations.
The stock is up 14.3% since reporting and currently trades at $293.09.
Read our full, actionable report on FedEx here, it’s free.
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