Q4 Earnings Roundup: RXO (NYSE:RXO) And The Rest Of The Ground Transportation Segment

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how RXO (NYSE:RXO) and the rest of the ground transportation stocks fared in Q4.

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 15 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.5% since the latest earnings results.

RXO (NYSE:RXO)

RXO reported revenues of $1.67 billion, up 70.4% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

Drew Wilkerson, chief executive officer of RXO, said, “The integration of Coyote Logistics remains ahead of schedule and we’re again raising our estimate for annualized cost synergies. We now expect to achieve at least $50 million in synergies.”

RXO pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.5% since reporting and currently trades at $19.65.

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Best Q4: XPO (NYSE:XPO)

XPO reported revenues of $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $124.75.

Weakest Q4: Avis Budget Group (NASDAQ:CAR)

Avis Budget Group reported revenues of $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 3.7% since the results and currently trades at $86.45.

Old Dominion Freight Line (NASDAQ:ODFL)

Old Dominion Freight Line reported revenues of $1.39 billion, down 7.3% year on year. This result surpassed analysts’ expectations by 1%. More broadly, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates but sales volume in line with analysts’ estimates.

The stock is flat since reporting and currently trades at $182.25.

Werner (NASDAQ:WERN)

Werner reported revenues of $754.7 million, down 8.2% year on year. This number lagged analysts' expectations by 0.9%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.

Werner had the slowest revenue growth among its peers. The stock is down 3.5% since reporting and currently trades at $33.46.

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This content was originally published on Stock Story