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Contract logistics company GXO (NYSE:GXO) will be reporting results tomorrow after the bell. Here’s what to look for.
GXO Logistics beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $3.16 billion, up 27.8% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ organic revenue 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 23.7% year on year to $3.20 billion, improving from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 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 four times over the last two years.
Looking at GXO Logistics’s peers in the air freight and logistics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Parcel Service delivered year-on-year revenue growth of 1.4%, meeting analysts’ expectations, and C.H. Robinson Worldwide reported flat revenue, falling short of estimates by 5.7%. United Parcel Service traded down 14.6% following the results while C.H. Robinson Worldwide was also down 6.9%.
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 air freight and logistics segment, with share prices up 2.3% on average over the last month. GXO Logistics’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $63.93 (compared to the current share price of $43.06).
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