RXO falls after Q3 results

RXO

07/11/2024 16:52

** U.S.-based freight forwarding and last-mile delivery services
provider RXO  RXO.N  shares fall 7.9% to $29.37
    ** The truck brokerage reports Q3 adj. profit 5 cents/shr,
above street consensus of 4 cents/shr — LSEG compiled data
    ** Revenue climbs 6.5% to $1.04 bln vs estimates of $975.5
mln 
    ** But gross margin in the quarter fell to 17.3% from 17.7%
a year earlier 
    ** The company expects brokerage volume in Q4 to be down
5%-10% from a year ago
    ** Expects Q4 adj. EBITDA in the range of $40 million-$45
million 
    ** "We believe this outlook will be lower than investors
expected," Stephens analyst wrote in a note
    ** Five of 17 brokerages rate the stock "buy" or higher, 9
"hold" and 3 "sell" or lower; their median PT is $30.5
    ** Including session's move, stock up 27.6% YTD

(Reporting by Abhinav Parmar in Bengaluru)
((Abhinav.parmar@thomsonreuters.com))