Freight Delivery Company RXO (NYSE:RXO) will be announcing earnings results this Thursday morning. Here’s what investors should know.
RXO missed analysts’ revenue expectations last quarter, reporting revenues of $1.47 billion, down 11.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is RXO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RXO’s revenue to decline 6.2% year on year, a reversal from the 57% increase it recorded in the same quarter last year.
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 multiple 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. Heartland Express’s revenues decreased 19.7% year on year, beating analysts’ expectations by 2.6%, and Avis Budget Group reported revenues up 4.1%, topping estimates by 4.7%. Heartland Express traded up 12.5% following the results while Avis Budget Group’s stock price was unchanged.
Read our full analysis of Heartland Express’s results here and Avis Budget Group’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 9.9% on average over the last month. RXO is up 18.7% during the same time and is heading into earnings with an average analyst price target of $16.06 (compared to the current share price of $18.18).
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