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As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the air freight and logistics industry, including United Parcel Service (NYSE:UPS) and its peers.
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 6 air freight and logistics stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.7%.
While some air freight and logistics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results.
United Parcel Service (NYSE:UPS)
Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.
United Parcel Service reported revenues of $25.3 billion, up 1.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations significantly.
“I want to thank all UPSers for their hard work and efforts as we closed out 2024 with an outstanding peak, delivering best-in-class service and strong financial results ahead of our targets for the quarter,” said Carol Tomé, UPS chief executive officer.
United Parcel Service delivered the weakest full-year guidance update of the whole group. The stock is down 12.8% since reporting and currently trades at $116.60.
Read our full report on United Parcel Service here, it’s free.
Best Q4: Expeditors (NYSE:EXPD)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.95 billion, up 29.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Expeditors delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $117.26.