Contract logistics company GXO (NYSE:GXO) will be reporting earnings tomorrow after market hours. Here’s what to look for.
GXO Logistics beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $3.25 billion, up 25.5% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is GXO Logistics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GXO Logistics’s revenue to grow 19.5% year on year to $2.94 billion, improving from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GXO Logistics has missed Wall Street’s revenue estimates three times over the last two years.
Looking at GXO Logistics’s peers in the transportation and logistics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. United Parcel Service posted flat year-on-year revenue, beating analysts’ expectations by 2.1%, and C.H. Robinson Worldwide reported a revenue decline of 8.3%, falling short of estimates by 4.9%. United Parcel Service traded down 1.8% following the results while C.H. Robinson Worldwide was up 1.2%.
Read our full analysis of United Parcel Service’s results here and C.H. Robinson Worldwide’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 12.3% on average over the last month. GXO Logistics is up 9.4% during the same time and is heading into earnings with an average analyst price target of $50 (compared to the current share price of $37.33).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.