RXO (RXO) Q1 Earnings Report Preview: Key Things to Watch

RXO, a freight delivery company listed on the New York Stock Exchange (NYSE), is set to release its Q1 earnings report tomorrow. In the previous quarter, RXO exceeded analysts’ revenue predictions by 0.6%, reporting total revenues of $1.67 billion, marking a substantial 70.4% increase year-over-year. The company performed exceptionally well in the quarter, surpassing both sales volume and adjusted operating income estimates made by analysts.

For the upcoming quarter, analysts forecast a 62.6% surge in RXO’s revenue to $1.48 billion, indicating a reversal from the downswing of 9.6% seen in the corresponding quarter last year. It is expected that the adjusted loss will be at -$0.02 per share for this quarter. Most financial analysts have upheld their estimates for RXO over the past month, which suggests stability in the company’s business operations leading up to the earnings release. RXO has failed to meet Wall Street’s revenue expectations on five occasions in the last two years.

Comparing RXO to its competitors in the ground transportation sector, some have already released their Q1 financial results, offering insights into what the industry might expect. Ryder reported a 1.1% increase in revenue year-over-year, meeting analysts’ forecasts, while XPO experienced a 3.2% decline in revenue, lower than the estimates by 0.9%. Following the results, Ryder’s stock price remained unchanged, whereas XPO enjoyed a 6.7% uptick.

Investor sentiment within the ground transportation sector has been upbeat, with a 12.3% average rise in share prices over the last month. During this period, RXO’s shares have also increased by 1.1%. Analysts have set an average price target of $19.61 for RXO, compared to the current share price of $14.36.

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