Transportation broker RXO Q3 profit beats on growth in truckload volume
Overview
US transportation broker's Q3 revenue rose yr/yr
Adjusted EPS for Q3 beat analyst expectations
Company to be acquired by C.H. Robinson in deal expected to close in H1 2027
Outlook
Company says it has strong momentum heading into the fourth quarter
RXO says it is helping customers navigate an evolving freight market
Company did not provide specific financial guidance for the upcoming quarter or full year in its press release
Result Drivers
BROKERAGE OUTPERFORMANCE - Co said continued growth in truckload volume and higher spot mix drove sequential improvement in gross profit per load
COMPLEMENTARY SERVICES - Co said Last Mile stops grew 5% yr/yr and Managed Transportation was awarded ~$140 mln in freight under management
MARKET SHARE GAINS - Co said it continued to gain market share in Brokerage, with truckload volume up 3% yr/yr
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $0.09 | $0.07 (19 Analysts) |
Q3 EPS | $0.02 | ||
Q3 Adjusted Net Income | $16 mln | ||
Q3 Adjusted EBITDA | $51 mln | ||
Q3 Adjusted EBITDA Margin | 2.70% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy."
Wall Street's median 12-month price target for RXO Inc is $30.00, about 8.7% above its October 28 closing price of $27.60
The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 104 three months ago
Reuters Recommended Reads
Oct 28 - CH Robinson Q3 revenue beats on higher truckload pricing
Oct 27 - Logistics firm Landstar System's Q3 revenue rises 25%, beats estimates
Oct 27 - Werner Enterprises Q3 revenue misses estimates as higher fuel costs weigh on margins
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)