RXO plunges after reporting bigger-than-expected loss

RXO

05/02/2025 18:52

** Shares of freight logistics firm RXO Inc  RXO.N  plunge 16.6%
to $21.11, lowest since Jun, on Weds after quarterly loss
exceeds Wall Street estimate
    ** Stock on track for biggest one-day pct decline since
being spun out of XPO  XPO.N  in Nov 2022
  
** North Carolina-based firm early Weds reported Q4 GAAP net
loss of $20 mln, or 12 cents/sh, vs profit of $2 mln, or 2
cents/sh a year ago
    ** Analysts on avg expected GAAP loss of $7.8 mln, or 4
cents/sh, per LSEG data
    ** Rev in qtr grew 70% y/y to $1.7 bln, inline with
consensus
** Co said volume in its brokerage business, including impact of
Coyote Logistics acquisition, declined 6% y/y in Q4.
Less-than-truckload volume increase of 1% was offset by 8%
decline in full truckload volume, while overall brokerage volume
grew 10% from Q3, it said
    ** 
  
    ** UPS  UPS.N  in Jun announced  of Coyote Logistics to RXO
for ~$1 bln
  
    ** Of 19 analysts covering RXO, recommendation breakdown is
4 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong
sell", according to LSEG; median PT is $27
  
    ** With move on the session, shares down ~11% YTD. Stock's
record high close was $31.90 in Nov
  

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))