Let’s dig into the relative performance of Norfolk Southern (NYSE: NSC) and its peers as we unravel the now-completed Q3 transportation and logistics earnings season.

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 28 transportation and logistics stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 0.7% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Norfolk Southern (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 reported revenues of $3.10 billion, up 1.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ sales volume estimates and a decent beat of analysts’ adjusted operating income estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $284.27.

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

Best Q3: Pangaea (NASDAQ: PANL)

Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Pangaea reported revenues of $168.7 million, up 10.2% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 31.7% since reporting. It currently trades at $6.48.

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

Weakest Q3: Genco (NYSE: GNK)

Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Genco reported revenues of $54.73 million, down 22.6% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

Genco delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 4.7% since the results and currently trades at $17.56.

Read our full analysis of Genco’s results here.

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. This result beat analysts’ expectations by 3.1%. It was a stunning quarter as it also produced a beat of analysts’ EPS and EBITDA estimates.

The stock is up 15.6% since reporting and currently trades at $5.74.

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

CSX (NASDAQ: CSX)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

CSX reported revenues of $3.59 billion, flat year on year. This print met analysts’ expectations. Overall, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates.

The stock is down 4.2% since reporting and currently trades at $34.99.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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