Freight Delivery Company RXO (NYSE: RXO) will be announcing earnings results this Thursday before market open. Here’s what to expect.
RXO missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $1.43 billion, up 57% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ 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 54.2% year on year to $1.43 billion, a reversal from the 3.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 14 analysts). 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 Q2 results, giving us a hint as to what we can expect. Werner’s revenues decreased 1% year on year, beating analysts’ expectations by 3%, and Saia reported flat revenue, topping estimates by 1.2%. Werner’s stock price was unchanged after the resultswhile Saia was up 4%.
Read our full analysis of Werner’s results here and Saia’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 2.1% on average over the last month. RXO is down 6.1% during the same time and is heading into earnings with an average analyst price target of $16.39 (compared to the current share price of $15.18).
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