Q1 Performance: C.H. Robinson, Landstar, and others.

Q1 Earnings reports are in, so let’s take a look at the performance of a few key publicly traded transportation stocks. 

C.H. Robinson

C.H. Robinson’s Q1 earnings report reveals a bumpy ride for the transportation giant, with declines across the board. 

• Total revenues down a whopping 32%.
• Gross profits take a nosedive, down 24.7%.
• Income from operations plunges 53%.
• Stock price increases by 8.17%, despite missing revenue expectations.

To weather this storm, C.H. Robinson is focusing on implementing cost-cutting measures, with a goal of achieving $300M in net operating cost savings by 4Q23. Analysts from Susquehanna and Bank of America give a thumbs up to these measures, and the company remains optimistic despite the challenges they face.

Landstar

Landstar also saw a soft trend in Q1, with even weaker trends in April. However, the company expects normal seasonal freight patterns to return in May. 

• Consolidated revenue down 27% YoY to $1.44 billion.
• Total truck capacity down 5% YoY.
• Revenue per load on truck-hauled loads down 14% YoY.
• Dry van loads on the platform down 12% YoY, flatbed loads down 3% YoY.
• Landstar reported EPS of $2.17, beating consensus estimates by 10 cents but $1.17 lower YoY.
• Landstar’s stock price increased 3.73% on Wednesday.

Although Landstar has experienced a pricing downturn for over a year, CEO Jim Gattoni is hopeful the cycle will reach its bottom soon. Gattoni trusts that the cycle’s pattern will repeat as it did during the pandemic.

Covenant 

Covenant Logistics experienced a decline in their Q1 earnings, including decreased freight revenue, weakened operating ratios, and a drop in diluted earnings per share. 

• Total freight revenue, excluding fuel down 9.4% to $233.4 million.
• Combined truckload revenue, excluding fuel down 3.8% to $148 million.
• Diluted earnings per share down to $1.19 from $1.32 in Q1 2022.
• On Wednesday, Covenant’s stock price was up 3.73%. 

Covenant’s recent acquisition of Lew Thompson & Son could potentially offset some of these setbacks, as it is expected to be immediately accretive. Additionally, the company is working to replace underperforming business with more profitable ventures, which may help improve future performance.

Old Dominion

Old Dominion Freight Line saw an underwhelming Q1, as well. The company missed Wall Street expectations in terms of earnings per share and revenue. 

• Total revenue $1.44 billion, down 3.7% YoY. 
• LTL revenues: $1.42 million, down 3.5% YoY
• Earnings per share: $2.58, missed expectations of $2.69.
• Stock price increased 2.52% on Wednesday.

The “darling” of the industry, Old Dominion, refuses to play limbo with its prices. They know that once you go low, you can’t go back up without serious backlash. 

LTL expert and industry observer Satish Jindel praises this approach. As other LTL carriers chase after shipments, Old Dominion keeps its cool and manages to maintain its market share through a unique blend of strategy and service. The company continues to invest in its future through dividends, share repurchases, and capital expenditures.