Unpacking Q3 Earnings: Norfolk Southern Corporation (NYSE:NSC) In The Context Of Other Transportation and Logistics Stocks
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 Norfolk Southern Corporation (NYSE:NSC) and the rest of the transportation and logistics stocks fared in Q3.
The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.
The 31 transportation and logistics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 15.4% below.
Thankfully, share prices of the companies have been resilient as they are up 8.5% on average since the latest earnings results.
Norfolk Southern Corporation (NYSE:NSC)
Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE:NSC) is a freight transportation company operating a major railroad network across the eastern United States.
Norfolk Southern Corporation reported revenues of $3.05 billion, up 2.7% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates.
Norfolk Southern Corporation Total Revenue
Interestingly, the stock is up 10.9% since reporting and currently trades at $275.
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $3 billion, up 37% year on year, outperforming analysts’ expectations by 21.3%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Expeditors Total Revenue
Expeditors scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.5% since reporting. It currently trades at $118.51.
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Scorpio Tankers reported revenues of $258.2 million, down 10.7% year on year, falling short of analysts’ expectations by 8.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Scorpio Tankers delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.9% since the results and currently trades at $50.66.
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 $426.8 million, up 1.3% year on year. This print came in 8% below analysts' expectations. Overall, it was a slower quarter for the company.
The stock is up 23.5% since reporting and currently trades at $53.61.
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 $2.05 billion, up 3.7% year on year. This print surpassed analysts’ expectations by 1.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
The stock is up 27.6% since reporting and currently trades at $153.49.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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