Ground Transportation Stocks Q4 Highlights: Knight-Swift Transportation (NYSE:KNX)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how ground transportation stocks fared in Q4, starting with Knight-Swift Transportation (NYSE:KNX).

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 softer Q4. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.

Knight-Swift Transportation (NYSE:KNX)

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services.

Knight-Swift Transportation reported revenues of $1.86 billion, flat year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 9.6% since reporting and currently trades at $63.49.

Read our full report on Knight-Swift Transportation here, it’s free.

Best Q4: XPO (NYSE:XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $2.01 billion, up 4.7% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

XPO achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23% since reporting. It currently trades at $220.86.

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

Weakest Q4: Avis Budget Group (NASDAQ:CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $2.66 billion, down 1.7% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 22.4% since the results and currently trades at $95.70.

Read our full analysis of Avis Budget Group’s results here.

Old Dominion Freight Line (NASDAQ:ODFL)

With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.

Old Dominion Freight Line reported revenues of $1.31 billion, down 5.7% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also logged a decent beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 14.3% since reporting and currently trades at $216.90.

Read our full, actionable report on Old Dominion Freight Line 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 $1.47 billion, down 11.9% year on year. This result lagged analysts' expectations by 0.7%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $16.53.

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

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