Let’s dig into the relative performance of Heartland Express (NASDAQ:HTLD) and its peers as we unravel the now-completed Q2 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 16 ground transportation stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1%.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and ground transportation stocks have had a rough stretch. On average, share prices are down 7% since the latest earnings results.

Best 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 $274.8 million, down 10.3% year on year. This print was in line with analysts’ expectations, and overall, it was an impressive quarter for the company with an impressive beat of analysts’ earnings estimates and an impressive beat of analysts’ operating margin 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 and six months ended June 30, 2024 reflect the combination of an extended and significant period of weak freight demand, driven by excess capacity in the industry and ongoing operating cost inflation."

Unsurprisingly, the stock is down 3.9% since reporting and currently trades at $11.98.

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

RXO (NYSE:RXO)

With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.

RXO reported revenues of $930 million, down 3.4% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ volume and operating margin estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.8% since reporting. It currently trades at $27.26.

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

Weakest Q2: Hertz (NASDAQ:HTZ)

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 $2.35 billion, down 3.4% year on year, falling short of analysts’ expectations by 4.3%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

Hertz had the weakest performance against analyst estimates in the group. As expected, the stock is down 29.8% since the results and currently trades at $2.87.

Read our full analysis of Hertz’s results here.

Landstar (NASDAQ:LSTR)

Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.

Landstar reported revenues of $1.23 billion, down 10.7% year on year, falling short of analysts’ expectations by 1.8%. Overall, it was a slower quarter for the company with a miss of analysts’ revenue estimates.

Landstar had the slowest revenue growth among its peers. The stock is down 6.9% since reporting and currently trades at $180.53.

Read our full, actionable report on Landstar here, it’s free.

ArcBest (NASDAQ:ARCB)

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

ArcBest reported revenues of $1.08 billion, down 2.3% year on year, surpassing analysts’ expectations by 1.9%. Overall, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.

ArcBest delivered the biggest analyst estimates beat among its peers. The stock is down 17.7% since reporting and currently trades at $100.09.

Read our full, actionable report on ArcBest here, it’s free.

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