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 ...

Core Insights - Shiplify has announced a strategic partnership with RXO to enhance accessorial revenue identification for LTL customers, improving transparency in the billing process [1][10] - The integration of Shiplify's AI-driven data with RXO's RXO Connect™ platform provides customers with actionable insights and operational efficiency [2][3] Company Overview - Shiplify specializes in accessorial revenue identification for carriers, shippers, and 3PL providers, offering real-time location data to streamline shipping operations [5] - RXO is a leading provider of asset-light transportation solutions, offering tech-enabled truck brokerage services and other logistics solutions across North America [6] Partnership Benefits - The partnership enhances delivery insights by identifying key attributes such as forklift accessibility and multi-tenant locations, ensuring efficient operations [2][9] - Shiplify's data capture helps RXO customers avoid unexpected challenges and fees associated with limited access and residential deliveries [9][10] Technology Integration - RXO has been utilizing AI and machine learning for over a decade, and the integration with Shiplify further refines logistics operations through improved data accuracy [3][8] - The partnership includes a feedback loop mechanism to ensure data accuracy, allowing users to report issues that can be resolved within 24 hours [10]

Shares of RXO Inc. NYSE: RXO are up more than 20% on the week, something investors probably didn't see coming out of the 'boring' transportation sector. This sector is notorious for having a low beta, English for low volatility. RXO stock has a beta below 1.0, meaning the company's stock price will move less than the daily move in the broader S&P 500 index. RXO 52-Week Range $16.94 Price Target $19.90 Get United Parcel Service alerts: The transportation industry is due for a change, particularly the trucklo ...

The company is buying the brokerage business of UPS. Building scale RXO, which was spun out of trucking company XPO in November 2022, is focused on brokerage, or connecting customers in need of shipping services to shippers. The deal would make RXO the third-largest U.S. broker, adding about 15,000 customers to its existing 4,000 and pushing RXO deeper into verticals including food and beverage. "RXO's highly accretive acquisition of Coyote will immediately increase the scale of our brokerage business, prov ...

Key Takeaways RXO shares soared in intraday trading Monday, a day after the package delivery firm agreed to buy UPS's freight brokerage unit, Coyote Logistics, for $1.025 billion. RXO said the acquisition would created the third-largest brokered transportation provider in North America, and be immediately accreditive to its adjusted EPS and adjusted free cash flow. UPS explained that the deal would help the company focus more on its core business. RXO (RXO) shares soared in intraday trading Monday, a day af ...

Exhibit 2.1 EXECUTION VERSION PURCHASE AGREEMENT BY AND BETWEEN UNITED PARCEL SERVICE OF AMERICA, INC., UPS CORPORATE FINANCE S.À R.L., UPS SCS (UK) LTD. AND RXO, INC. Dated as of June 21, 2024 TABLE OF CONTENTS | | | Page | | --- | --- | --- | | ARTICLE I DEFINITIONS | | 2 | | Section 1.1 | Definitions | 2 | | Section 1.2 | Other Definitions | 20 | | Section 1.3 | Construction | 22 | | ARTICLE II PURCHASE AND SALE | | 23 | | Section 2.1 | Purchase and Sale of Equity Interests | 23 | | Section 2.2 | Purchas ...

Monty Rakusen Summary Following my coverage on RXO, Inc. (NYSE:RXO) in Dec'23, which I reiterated a hold rating as I was worried about the pricing headwinds despite positive indicators for a volume recovery, this post is to provide an update on my thoughts on the business and stock. I am upgrading my recommendation from hold to buy as I see greater visibility to a recovery in the coming years, with expectations that RXO can accelerate growth to 20% in FY26 and EBITDA margins to hit 6%. Investment thesis On ...

[Part I—Financial Information](index=4&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported a **$15 million** net loss in Q1 2024, a decline from break-even, with total assets at **$1.80 billion** and operating cash flow at **$7 million** Q1 2024 Key Financial Metrics | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Revenue** | $913 | $1,010 | | **Operating Income (Loss)** | $(12) | $5 | | **Net Income (Loss)** | $(15) | $0 | | **Diluted EPS** | $(0.13) | $0.00 | Balance Sheet Summary | Account | March 31, 2024 (in millions) | Dec 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $770 | $796 | | **Total Assets** | $1,799 | $1,825 | | **Total Current Liabilities** | $674 | $682 | | **Total Liabilities** | $1,217 | $1,231 | | **Total Equity** | $582 | $594 | Cash Flow Summary | Activity | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $7 | $42 | | **Net Cash used in Investing Activities** | $(11) | $(12) | | **Net Cash from (used in) Financing Activities** | $6 | $(8) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's brokered transportation platform, revenue disaggregation, debt, and legal contingencies, including Q1 2024 restructuring charges - RXO operates as a technology-driven, asset-light brokered transportation platform, with its core business in truck brokerage, complemented by managed transportation, last mile, and freight forwarding services[24](index=24&type=chunk) Revenue by Service Offering (Q1 2024 vs Q1 2023) | Service Offering | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Truck brokerage | $564 | $600 | | Last mile | $232 | $240 | | Managed transportation | $97 | $117 | | Freight forwarding | $55 | $80 | - The company recorded restructuring charges of **$11 million** in Q1 2024, primarily for severance and facility costs, with a remaining liability of **$12 million** expected to be paid within twelve months[33](index=33&type=chunk) - The company is involved in several class action lawsuits alleging misclassification of independent contractors in its last mile business. The company believes the claims are without merit but is unable to estimate the possible loss or range of loss[50](index=50&type=chunk)[53](index=53&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue declined **9.6%** due to lower rates and volumes, causing margin compression, with a credit facility amendment providing increased financial flexibility - Revenue for Q1 2024 decreased by **9.6% to $913 million** from $1,010 million in Q1 2023[69](index=69&type=chunk) - The revenue decline was driven by a **$36 million decrease in truck brokerage** (15% lower revenue per load, partially offset by 11% higher volume), a **$25 million decrease in freight forwarding**, and a **$20 million decrease in managed transportation**[69](index=69&type=chunk) - Cost of transportation and services as a percentage of revenue increased from **75.1% to 76.6%** year-over-year, primarily due to margin pressure in the truck brokerage segment[70](index=70&type=chunk) - The company amended its Revolver in April 2024 to temporarily increase the maximum consolidated leverage ratio, raising it to **4.25:1.00** for the quarters ending June 30 and September 30, 2024[80](index=80&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk exposures, including foreign currency, commodity, interest rate, and fuel price risks, since the 2023 Form 10-K - There have been no material changes to the company's market risk exposures related to foreign currency, commodity prices, interest rates, or fuel prices since the 2023 Form 10-K[86](index=86&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[87](index=87&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2024[88](index=88&type=chunk) [Part II—Other Information](index=22&type=section&id=Part%20II%E2%80%94Other%20Information) [Item 1. Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the financial statements for details on legal proceedings, including misclassification claims against its last mile subsidiary - For information on legal proceedings, the report directs readers to Note 9—Commitments and Contingencies in the financial statements[90](index=90&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported since the 2023 Form 10-K - There have been no material changes to the company's risk factors as disclosed in the 2023 Form 10-K[91](index=91&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered securities were issued, and no shares were repurchased in Q1 2024, with **$123 million** remaining for future repurchases - No unregistered securities were issued in the three months ended March 31, 2024[92](index=92&type=chunk) - The company did not repurchase any shares during Q1 2024. As of March 31, 2024, **$123 million** remains authorized under the share repurchase program[93](index=93&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) Exhibits filed include CEO and CFO certifications as required by the Sarbanes-Oxley Act - Exhibits filed with the report include certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act[98](index=98&type=chunk)

RXO, Inc. (NYSE:RXO) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET Company Participants Drew Wilkerson - CEO James Harris - CFO Jared Weisfeld - CSO Conference Call Participants Stephanie Moore - Jefferies Tom Wadewitz - UBS Scott Schneeberger - Oppenheimer Brandon Oglenski - Barclays Ken Hoexter - Bank of America Jason Seidl - TD Cowen Ravi Shanker - Morgan Stanley Jordan Alliger - Goldman Sachs Daniel Imbro - Stephens Inc. Kevin Gainey - Thompson Davis Operator Welcome to the 1Q 2024 RXO Earning ...