Freight Delivery Company RXO (NYSE:RXO) will be reporting earnings tomorrow before market open. Here’s what to expect.
RXO beat analysts’ revenue expectations by 9.7% last quarter, reporting revenues of $1.04 billion, up 6.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS 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 69.4% year on year to $1.66 billion, a reversal from the 12.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RXO has missed Wall Street’s revenue estimates six times over the last two years.
Looking at RXO’s peers in the ground transportation segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ArcBest’s revenues decreased 8.1% year on year, meeting analysts’ expectations, and Saia reported revenues up 5%, topping estimates by 1.5%. ArcBest traded down 3% following the results.
Read our full analysis of ArcBest’s results here and Saia’s results here.
Investors in the ground transportation segment have had steady hands going into earnings, with share prices flat over the last month. RXO is down 4.2% during the same time and is heading into earnings with an average analyst price target of $26.75 (compared to the current share price of $24.64).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.