Wrapping up Q3 earnings, we look at the numbers and key takeaways for the ground transportation stocks, including Schneider (NYSE: SNDR) and its peers.

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 14 ground transportation stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.

In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.

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 $1.45 billion, up 10.4% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 12% since reporting and currently trades at $25.35.

Read our full report on Schneider here, it’s free for active Edge members.

Best Q3: 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 $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Hertz achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $5.14.

Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: U-Haul (NYSE: UHAL)

Founded by a husband and wife duo, U-Haul (NYSE: UHAL) is a provider of rental trucks and storage facilities.

U-Haul reported revenues of $1.72 billion, up 3.7% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

The stock is flat since the results and currently trades at $52.89.

Read our full analysis of U-Haul’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 $771.5 million, up 3.5% year on year. This print topped analysts’ expectations by 1%. Zooming out, it was a softer quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is up 13.4% since reporting and currently trades at $28.79.

Read our full, actionable report on Werner here, it’s free for active Edge members.

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 $1.05 billion, down 1.4% year on year. This result met analysts’ expectations. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 2.4% since reporting and currently trades at $69.68.

Read our full, actionable report on ArcBest here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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