First look: Wall Street wallops RXO after earnings release

Core Viewpoint - RXO's third quarter earnings report led to a significant pre-market stock sell-off of over 14.8%, reflecting investor disappointment despite the earnings not being overly negative [1] Financial Performance - Adjusted net income decreased year-on-year from $7 million to $2 million, with non-GAAP EPS dropping to 1 cent from 5 cents, missing Wall Street estimates by 3 cents [2] - Total revenue for the quarter was $1.4 billion, falling short of consensus estimates by $30 million [2] - Adjusted EBITDA slightly declined to $32 million from $33 million year-on-year, with the adjusted EBITDA margin decreasing from 3.2% to 2.3% [3] - The net loss per share on a GAAP basis was 8 cents, accumulating to a total loss of 32 cents per share for the first three quarters [3] Strategic Positioning - RXO's CEO highlighted the company's strong positioning as the third-largest brokered transportation provider in North America, emphasizing the benefits of scale and technology [4] - The company anticipates over $30 million in savings from new cost initiatives, aiming for long-term strong cash flow due to its asset-light business model [4] Market Comparison - RXO's performance contrasts sharply with its peer C.H. Robinson, which has seen significant growth in key metrics and a stock price increase of over 45% in the last year [4] - RXO's stock has declined approximately 37.5% over the past year, although it has risen about 13.8% in the last three months prior to the recent sell-off [4] Revenue Drivers - The increase in RXO's revenue for the third quarter was partly attributed to the acquisition of Coyote Logistics, completed in the previous year's third quarter [5]