Let’s dig into the relative performance of Heartland Express (NASDAQ:HTLD) and its peers as we unravel the now-completed Q1 ground transportation earnings season.
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 15 ground transportation stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.8%.
Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.
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 $219.4 million, down 18.8% year on year. This print fell short of analysts’ expectations by 9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended March 31, 2025, reflect a combination of adverse weather experienced in January and February, tariff uncertainties amongst our customers in March, along with prolonged industry-wide challenges where operating cost inflation continued to outpace customer freight demand and freight rate improvements."
Interestingly, the stock is up 17.3% since reporting and currently trades at $9.20.
Read our full report on Heartland Express here, it’s free.
Best Q1: Schneider (NYSE:SNDR)
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 a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $24.18.
Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.
Universal Logistics (NASDAQ:ULH)
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, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Universal Logistics delivered the slowest revenue growth in the group. As expected, the stock is down 1.8% since the results and currently trades at $26.41.
Read our full analysis of Universal Logistics’s results here.
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 $712.1 million, down 7.4% year on year. This print missed analysts’ expectations by 3.4%. Overall, it was a disappointing quarter as it also logged a miss of analysts’ Logistics revenue and adjusted operating income estimates.
The stock is down 1.8% since reporting and currently trades at $27.17.
Read our full, actionable report on Werner here, it’s free.
Ryder (NYSE:R)
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 met analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and full-year EPS guidance beating analysts’ expectations.
The stock is up 12.3% since reporting and currently trades at $154.76.
Read our full, actionable report on Ryder 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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