RXO Q2 adjusted EPS beats estimates
RXO•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Beat | $0.06 | $0.03 (16 Analysts) |
| Q2 Adjusted Net Income | $10 mln | ||
| Q2 Adjusted EBITDA | $40 mln | ||
| Q2 Adjusted EBITDA Margin | 2.30% |
Result drivers
- BROKERAGE VOLUME GROWTH - Full truckload volume in Brokerage grew 2% yr/yr, outperforming the market
- SPOT MIX IMPACT - Sequential gross profit per load rose 11%, the highest in four years, driven by a 900-basis-point increase in truckload spot mix
- COMPLEMENTARY SERVICES - Last Mile gained market share with 3% yr/yr stop growth and Managed Transportation won $100 mln in additional freight under management
Analyst coverage
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"
- The average consensus recommendation for the ground freight & logistics peer group is "buy"
- Wall Street's median 12-month price target for RXO Inc is $26.00, about 23.8% above its August 5 closing price of $21.00
- The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 175 three months ago
