RXO (NYSE:RXO) Issues Earnings Results

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

Shares of RXO stock traded down $1.31 during mid-day trading on Friday, reaching $21.80. 3,504,912 shares of the company’s stock traded hands, compared to its average volume of 2,109,661. RXO has a 12 month low of $10.43 and a 12 month high of $23.37. The firm has a 50 day moving average price of $15.96 and a two-hundred day moving average price of $15.01. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.27. The firm 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.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on RXO shares. Citigroup boosted their target price on shares of RXO from $17.00 to $24.00 and gave the company a “neutral” rating in a research note on Friday. Weiss Ratings raised RXO from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday. Truist Financial increased their target price on RXO from $20.00 to $26.00 and gave the company a “buy” rating in a report on Friday. Benchmark reissued a “hold” rating on shares of RXO in a report on Monday, February 9th. Finally, Stifel Nicolaus set a $15.00 target price on RXO in a report on Thursday, February 5th. Two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $19.54.

Key Headlines Impacting RXO

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 Investors Weigh In On RXO

A number of hedge funds have recently modified their holdings of the business. Orbis Allan Gray Ltd increased its stake in shares of RXO by 6.5% in the fourth quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company’s stock worth $438,327,000 after purchasing an additional 2,104,597 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of RXO by 7.9% during the 3rd quarter. Wellington Management Group LLP now owns 9,998,681 shares of the company’s stock valued at $153,780,000 after buying an additional 735,810 shares in the last quarter. State Street Corp lifted its stake in shares of RXO by 3.7% during the 4th quarter. State Street Corp now owns 6,370,232 shares of the company’s stock valued at $80,520,000 after buying an additional 230,053 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of RXO by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 3,876,488 shares of the company’s stock valued at $49,008,000 after buying an additional 18,110 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of RXO by 4.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,421,199 shares of the company’s stock valued at $30,604,000 after buying an additional 100,468 shares in the last quarter. Institutional investors own 92.73% of the company’s stock.

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.