THE growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight, reports the Toronto Globe and Mail.
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 seven air freight and logistics stocks tracked reported a mixed Q3. As a group, revenues beat analysts' consensus estimates by two per cent while next quarter's revenue guidance was 19.3 per cent below.
In light of this news, share prices of the companies have held steady as they are up 1.5 per cent on average since the latest earnings results.
GXO Logistics, with notable customers such as Nike and Apple, the firm outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of C$3.16 billion (US$2.24), up 27.8 per cent year on year. This exceeded analysts' expectations by 5.3 per cent.
Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts' expectations significantly.
Said GXO chief executive Malcolm Wilson: 'We have increasing momentum in our business. In the third quarter, we delivered our highest-ever quarterly revenue of C$3.2 billion, reflecting growth of 28 per cent year over year, along with sequential improvement in organic revenue growth and strong free cash flow.'
Expeditors reported revenues of C$3 billion, up 37 per cent year on year, outperforming analysts' expectations by 21.3 per cent. The business had an incredible quarter with an impressive beat of analysts' EBITDA estimates.
FedEx reported revenues of USus$21.58 billion, flat year on year, falling short of analysts' expectations by 1.5 per cent. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates.
United Parcel Service reported revenues of US$22.25 billion, up 5.6 per cent year on year. This result topped analysts' expectations by 0.5 per cent. It was a strong quarter as it also produced a solid beat of analysts' EBITDA estimates.
United Parcel Service achieved the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at US$132.
SeaNews Turkey
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 seven air freight and logistics stocks tracked reported a mixed Q3. As a group, revenues beat analysts' consensus estimates by two per cent while next quarter's revenue guidance was 19.3 per cent below.
In light of this news, share prices of the companies have held steady as they are up 1.5 per cent on average since the latest earnings results.
GXO Logistics, with notable customers such as Nike and Apple, the firm outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of C$3.16 billion (US$2.24), up 27.8 per cent year on year. This exceeded analysts' expectations by 5.3 per cent.
Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts' expectations significantly.
Said GXO chief executive Malcolm Wilson: 'We have increasing momentum in our business. In the third quarter, we delivered our highest-ever quarterly revenue of C$3.2 billion, reflecting growth of 28 per cent year over year, along with sequential improvement in organic revenue growth and strong free cash flow.'
Expeditors reported revenues of C$3 billion, up 37 per cent year on year, outperforming analysts' expectations by 21.3 per cent. The business had an incredible quarter with an impressive beat of analysts' EBITDA estimates.
FedEx reported revenues of USus$21.58 billion, flat year on year, falling short of analysts' expectations by 1.5 per cent. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates.
United Parcel Service reported revenues of US$22.25 billion, up 5.6 per cent year on year. This result topped analysts' expectations by 0.5 per cent. It was a strong quarter as it also produced a solid beat of analysts' EBITDA estimates.
United Parcel Service achieved the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at US$132.
SeaNews Turkey
