GXO Logistics(US:GXO) ZACKSยท2025-02-13 00:05Company Performance - GXO Logistics reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and up from $0.70 per share a year ago, representing an earnings surprise of 6.38% [1] - The company posted revenues of $3.25 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.31%, compared to year-ago revenues of $2.59 billion [2] - Over the last four quarters, GXO Logistics has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Market Outlook - GXO Logistics shares have underperformed the market, losing about 1.2% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $2.99 billion, and $3.06 on revenues of $12.8 billion for the current fiscal year [7] Industry Context - The Transportation - Air Freight and Cargo industry, to which GXO Logistics belongs, is currently in the bottom 10% of the Zacks industry rankings, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact GXO Logistics' stock performance [5] - The unfavorable estimate revisions trend for GXO Logistics has resulted in a Zacks Rank 5 (Strong Sell), suggesting that the shares are expected to underperform the market in the near future [6]