UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ Form 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-41514 ___________________ ...

For the quarter ended September 2024, RXO (RXO) reported revenue of $1.04 billion, up 6.6% over the same period last year. EPS came in at $0.05, compared to $0.05 in the year-ago quarter.The reported revenue represents a surprise of +7.27% over the Zacks Consensus Estimate of $969.53 million. With the consensus EPS estimate being $0.04, the EPS surprise was +25.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Company Performance - RXO reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, and matching the earnings from the previous year [1] - The company achieved revenues of $1.04 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.27% and showing an increase from $976 million year-over-year [2] - Over the last four quarters, RXO has surpassed consensus EPS estimates three times and topped revenue estimates once [2] Stock Movement and Outlook - RXO shares have increased approximately 37.2% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $1.25 billion, and for the current fiscal year, it is $0.16 on revenues of $3.91 billion [7] Industry Context - The Transportation - Services industry, to which RXO belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of RXO may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Wall Street expects a year-over-year decline in earnings on higher revenues when RXO (RXO) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 7, 2024, might help the stock move higher if these key numbers are better than expectati ...

RXO Inc. (NYSE: RXO ) is a company in the freight brokerage space that has been booming with increasing freight load volumes and steadily improving figures of revenue per load. After its acquisition of UPS' freight brokerage I specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I've developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, particularly in the tec ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $28 million, down from $38 million in Q2 2023, with an adjusted EBITDA margin of 3%, up 140 basis points sequentially but down 90 basis points year-over-year [13][21] - Revenue decreased to $930 million from $963 million year-over-year, with a gross margin of 19%, up 160 basis points sequentially and 40 basis points year-over-year [13][21] - Brokerage gross margin was 14.7%, up 50 basis points sequentially but down 70 basis points year-over-year [14][27] Business Line Data and Key Metrics Changes - Brokerage revenue was $543 million, down 4% sequentially and 3% year-over-year, with full truckload volume down 2% and LTL volume up 40% year-over-year [14][24] - Complementary Services revenue was $421 million, up 10% sequentially but down 4% year-over-year, with last mile stops growing by 7% year-over-year [15][24] - Last mile gross margin increased to 23%, up 240 basis points sequentially and 170 basis points year-over-year, driven by improved volume and profitability initiatives [15][24] Market Data and Key Metrics Changes - The national load-to-truck ratio averaged approximately 4.2% in Q2, indicating a soft freight market but showing some improvement [29][31] - Carrier rates have started to increase, which may put short-term pressure on gross margins, but this is seen as a sign of an unsustainable level for many carriers [8][9] - Demand indicators remain mixed, with inflation moderating but consumer confidence and the labor market showing signs of weakness [9][31] Company Strategy and Development Direction - The company is focused on strategic investments, including the planned acquisition of Coyote Logistics, expected to close in the first half of Q4 2024 [12][37] - RXO aims to continue taking profitable market share and expects to see sequential and year-over-year adjusted EBITDA growth in Q3 2024 [11][21] - The company is committed to improving last mile profitability and has a substantial sales pipeline in managed transportation, exceeding $1.6 billion [6][37] Management's Comments on Operating Environment and Future Outlook - Management noted that while the freight market remains soft, there are encouraging signs, and they expect to capture spot volume and project freight when the market recovers [9][11] - The company anticipates a decline in brokerage volume by low to mid-single digits year-over-year in Q3, with LTL volume expected to grow [10][33] - Management expressed confidence in the ability to grow adjusted EBITDA sequentially and year-over-year despite the current market conditions [11][21] Other Important Information - The company ended the quarter with $7 million in cash and approximately $600 million in committed liquidity, with a gross leverage ratio of 3.3 times trailing 12 months adjusted EBITDA [18][19] - RXO expects annualized cost reductions of approximately $35 million to $40 million, with significant progress made in cost initiatives [20][21] - Adjusted free cash flow was negative $9 million for Q2, slightly better than expectations, impacted by lower profitability levels [17][18] Q&A Session Summary Question: Volume expectations for Q3 - Management expects volume to improve slightly sequentially from Q2 to Q3, despite year-over-year declines in full truckload volume [40][41] Question: Revenue per load outlook - Management noted that full truckload revenue per load inflected positively in June, and they anticipate continued improvement in this metric [42][43] Question: Market conditions and pricing opportunities - Load-to-truck ratios are still below levels that typically indicate strong spot volume opportunities, with expectations for improvement later in the year [44][45] Question: Drivers of sequential EBITDA improvement - The improvement is primarily driven by cost initiatives, with expectations for leverage ratios to decrease in Q3 [45][46] Question: Coyote acquisition financing - Committed financing is in place for the Coyote acquisition, with expectations that it will be credit neutral [46] Question: Bid season pricing strategy - The company has maintained a transparent pricing strategy, which has been well received by customers [49][50] Question: Cost initiatives performance - Cost initiatives are running as expected, with full impact anticipated in Q3 and Q4 [51][52] Question: Headcount outlook - The company plans to maintain headcount at around 15% for growth, with some areas seeing increases and others remaining flat [60][61] Question: Integration preparation for Coyote - Integration planning is ongoing, with excitement about the acquisition and progress being made [67]

RXO (RXO) came out with quarterly earnings of $0.03 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this transportation services provider would post a loss of $0.04 per share when it actually produced a loss of $0.03, delivering a surprise of 25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. RXO, which belongs to ...

The market expects RXO (RXO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price chang ...

Group 1 - RXO shares experienced an 8.5% increase in the last trading session, closing at $29.39, with a notable trading volume compared to typical sessions, and a total gain of 35.1% over the past four weeks [1] - RXO has gained over 44% in the last month, driven by a significant deal with UPS to acquire Coyote Logistics for more than $1 billion, which has positively impacted RXO's stock performance [2] - RXO is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 75%, with revenues projected at $949.34 million, down 1.4% from the previous year [3] Group 2 - The consensus EPS estimate for RXO has been revised 7% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - RXO holds a Zacks Rank of 3 (Hold), indicating a neutral outlook within the Zacks Transportation - Services industry [4] - Another company in the same industry, Global Business Travel Group, Inc. (GBTG), has a consensus EPS estimate of -$0.03, unchanged over the past month, representing an 87% increase compared to the previous year's EPS [5]

ATLANTA, July 09, 2024 (GLOBE NEWSWIRE) -- Shiplify, the primary accessorial revenue identifier for carriers, shippers and third party logistics (3PL) providers, today announced a strategic partnership with RXO, a leading provider of asset-light transportation solutions. The integration of Shiplify's data with RXO's proprietary RXO Connect™ platform provides RXO's less-than-truckload (LTL) customers with accessorial visibility ahead of delivery, improving transparency during the billing process. "Shiplify n ...