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Transportation broker RXO Q3 profit beats on growth in truckload volume

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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