In This Article:
Freight Delivery Company RXO (NYSE:RXO) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
RXO beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.67 billion, up 70.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income 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 62.6% year on year to $1.48 billion, a reversal from the 9.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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 five times over the last two years.
Looking at RXO’s peers in the ground transportation segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ryder delivered year-on-year revenue growth of 1.1%, meeting analysts’ expectations, and XPO reported a revenue decline of 3.2%, falling short of estimates by 0.9%. Ryder’s stock price was unchanged after the results, while XPO was up 6.7%.
Read our full analysis of Ryder’s results here and XPO’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 12.3% on average over the last month. RXO is up 1.1% during the same time and is heading into earnings with an average analyst price target of $19.61 (compared to the current share price of $14.36).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.