Contract logistics company GXO (NYSE:GXO) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
GXO Logistics beat analysts’ revenue expectations by 6% last quarter, reporting revenues of $2.85 billion, up 18.9% year on year. It was a very strong quarter for the company, with optimistic earnings guidance for the full year and a decent beat of analysts’ EBITDA estimates.
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 21.4% year on year to $3.00 billion, improving from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 4 upward revisions over the last 30 days (we track 10 analysts). GXO Logistics has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at GXO Logistics’s peers in the air freight and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. C.H. Robinson Worldwide delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 2.4%, and United Parcel Service reported revenues up 5.6%, in line with consensus estimates. C.H. Robinson Worldwide traded down 6.1% following the results while United Parcel Service was up 4.7%.
Read our full analysis of C.H. Robinson Worldwide’s results here and United Parcel Service’s results here.
Investors in the air freight and logistics segment have had steady hands going into earnings, with share prices flat over the last month. GXO Logistics is up 19.4% during the same time and is heading into earnings with an average analyst price target of $67.68 (compared to the current share price of $58.68).
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