RXO (NYSE:RXO) Issues Quarterly Earnings Results, Hits Estimates

RXO (NYSE:RXO) announced its earnings results on Thursday. The company reported ($0.09) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.09), FiscalAI reports. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.34 billion. RXO had a negative return on equity of 1.16% and a negative net margin of 1.83%.The company’s quarterly revenue was down .6% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.03) EPS.

Here are the key takeaways from RXO’s conference call:

• Management says a supply-driven recovery is underway and that bid season outcomes mean they now expect full-year contract rates to increase by high single digits, up from prior low-to-mid single-digit guidance.
• Brokerage momentum accelerated as spot mix rose 500 bps sequentially (35% in April), driving a meaningful sequential increase in truckload gross profit per load and improved quoting/conversion trends.
• RXO is rapidly deploying agentic AI — including an AI spot agent and automation that handled ~500,000 calls — which management says has already increased volume, gross profit per load, and productivity (loads per person up ~15%).
• After a weather-impacted Q1 with adjusted EBITDA of $6M, the company guides Q2 adjusted EBITDA of $27M–$37M, signaling management expects significant sequential recovery into the quarter.
• Demand remains soft and there are near-term financial/operational pressures: Q1 adjusted free cash flow was -$15M, cash was $21M at quarter end, net leverage was ~3.7x, and severe weather plus some elevated negative-margin loads weighed on results.

RXO Trading Down 5.7%

NYSE:RXO traded down $1.31 during trading hours on Friday, hitting $21.80. The company had a trading volume of 3,504,912 shares, compared to its average volume of 2,109,661. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.27 and a quick ratio of 1.27. The stock has a 50-day moving average price of $15.96 and a 200 day moving average price of $15.01. The company has a market capitalization of $3.59 billion, a PE ratio of -35.74, a price-to-earnings-growth ratio of 38.89 and a beta of 1.96. RXO has a 52 week low of $10.43 and a 52 week high of $23.37.

RXO News Summary

Here are the key news stories impacting RXO this week:

• Positive Sentiment: RXO reported Q1 adjusted results that matched EPS expectations and beat revenue estimates, helping ease concerns about demand trends and Amazon-related weakness. RXO Announces First-Quarter Results and Second-Quarter Outlook
• Positive Sentiment: The company’s Q2 outlook also topped Street expectations, with management projecting $27 million to $37 million in adjusted EBITDA and saying contract rates are trending toward high-single-digit gains. RXO expects $27M-$37M Q2 adjusted EBITDA…
• Positive Sentiment: Management said brokerage momentum is improving, full truckload volume strengthened through the quarter, and higher spot mix should support margins going forward. RXO raises contract rate outlook as Q2 profit seen higher
• Neutral Sentiment: Analysts raised price targets after the report, with TD Cowen lifting its target to $21 and Susquehanna increasing its target to $18, but both firms kept cautious ratings. Analyst updates on RXO
• Negative Sentiment: RXO still posted a quarterly loss, and revenue was slightly down year over year, so investors remain focused on whether improved pricing and volume can translate into sustained profitability. RXO Reports Q1 Loss…

Institutional Trading of RXO

Large investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. purchased a new position in shares of RXO in the 1st quarter valued at approximately $30,000. Quarry LP purchased a new stake in RXO in the third quarter worth $33,000. Larson Financial Group LLC raised its holdings in RXO by 146.5% in the third quarter. Larson Financial Group LLC now owns 2,766 shares of the company’s stock worth $43,000 after purchasing an additional 1,644 shares in the last quarter. Strs Ohio bought a new position in RXO in the first quarter worth $97,000. Finally, Osaic Holdings Inc. lifted its position in RXO by 101.6% during the second quarter. Osaic Holdings Inc. now owns 8,507 shares of the company’s stock valued at $134,000 after buying an additional 4,287 shares during the period. 92.73% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on RXO shares. Morgan Stanley restated an “equal weight” rating and issued a $22.00 price objective (up from $19.00) on shares of RXO in a report on Thursday. Barclays increased their target price on shares of RXO from $17.00 to $20.00 and gave the company an “overweight” rating in a report on Friday. UBS Group boosted their price target on shares of RXO from $17.00 to $22.00 and gave the stock a “neutral” rating in a research note on Friday. Zacks Research upgraded shares of RXO from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Finally, Truist Financial raised their price objective on RXO from $20.00 to $26.00 and gave the company a “buy” rating in a research note on Friday. Two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $19.54.

About RXO

RXO Inc (NYSE: RXO) is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.