What Happened?
Shares of transportation and logistics solutions provider Universal Logistics (NASDAQ:ULH) fell 9.1% in the morning session after the company reported weak first-quarter 2025 results, as both revenue and EBITDA fell well below Wall Street's expectations. Sales fell across every major segment: contract logistics, the company's largest line, shrank 18%, while intermodal and trucking dropped nearly 10% and 20%, respectively. Management acknowledged the sluggish start but pointed to improving trends later in the quarter, and emphasized plans to restructure underperforming operations and pursue new customer wins. Still, with no guidance issued and visibility into a rebound unclear, the quarter offered little to ease concerns about the company's path back to growth.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Universal Logistics’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 12.4% on the news that the company reported weak third-quarter earnings results, with its revenue falling short of Wall Street's estimates, sending shares lower. Overall, this quarter could have been better.
Universal Logistics is down 41.9% since the beginning of the year, and at $25.42 per share, it is trading 51.4% below its 52-week high of $52.28 from November 2024. Investors who bought $1,000 worth of Universal Logistics’s shares 5 years ago would now be looking at an investment worth $1,825.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.