Freight Delivery Company RXO (NYSE:RXO) will be reporting results tomorrow morning. Here’s what investors should know.
RXO met analysts’ revenue expectations last quarter, reporting revenues of $930 million, down 3.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ volume and EBITDA estimates.
Is RXO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RXO’s revenue to grow 7.2% year on year to $1.05 billion, a reversal from the 14.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RXO has missed Wall Street’s revenue estimates six times over the last two years.
Looking at RXO’s peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. XPO delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 1.8%, and Covenant Logistics reported flat revenue, falling short of estimates by 2.8%. XPO traded up 8.7% following the results while Covenant Logistics’s stock price was unchanged.
Read our full analysis of XPO’s results here and Covenant Logistics’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 2.7% on average over the last month. RXO is up 2.1% during the same time and is heading into earnings with an average analyst price target of $27.93 (compared to the current share price of $28.20).
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