Q3 Earnings Highlights: RXO (NYSE:RXO) Vs The Rest Of The Ground Transportation Stocks

Looking back on ground transportation stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including RXO (NYSE:RXO) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 16 ground transportation stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.9%.

Thankfully, share prices of the companies have been resilient as they are up 8.7% on average since the latest earnings results.

RXO (NYSE:RXO)

RXO reported revenues of $1.04 billion, up 6.6% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and EBITDA guidance for next quarter missing analysts’ expectations.

Drew Wilkerson, chief executive officer of RXO, said, “In the third quarter, our focus on execution enabled us to achieve a solid 13.7% gross margin in our Brokerage business, despite the prolonged soft freight market. Momentum continued within our complementary services. In Managed Transportation, we secured more than $300 million in new business and continue to have a strong sales pipeline of more than $1.3 billion in freight under management. In Last Mile, we grew stops by 11% year-over-year, an acceleration from our second-quarter growth rate.”

Unsurprisingly, the stock is down 14.5% since reporting and currently trades at $27.29.

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Best Q3: XPO (NYSE:XPO)

XPO reported revenues of $2.05 billion, up 3.7% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.

XPO pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 30.4% since reporting. It currently trades at $156.79.

Weakest Q3: Werner (NASDAQ:WERN)

Werner reported revenues of $745.7 million, down 8.8% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 1.5% since the results and currently trades at $38.83.

U-Haul (NYSE:UHAL)

U-Haul reported revenues of $1.66 billion, flat year on year. This print came in 1.7% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.

The stock is down 4.1% since reporting and currently trades at $73.26.

Universal Logistics (NASDAQ:ULH)

Universal Logistics reported revenues of $426.8 million, up 1.3% year on year. This print came in 8% below analysts' expectations. It was a softer quarter as it also produced a significant miss of analysts’ EPS estimates.

Universal Logistics had the weakest performance against analyst estimates among its peers. The stock is up 11.6% since reporting and currently trades at $48.47.

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This content was originally published on Stock Story