Freight Delivery Company RXO (NYSE:RXO) will be announcing earnings results tomorrow before market hours. Here's what to expect.
RXO missed analysts' revenue expectations by 3.7% last quarter, reporting revenues of $913 million, down 9.6% year on year. It was a decent quarter for the company, with an impressive beat of analysts' volume estimates.
Is RXO a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting RXO's revenue to decline 3.1% year on year to $933.2 million, improving from the 21.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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. RXO has missed Wall Street's revenue estimates five times over the last two years.
Looking at RXO's peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Heartland Express's revenues decreased 10.3% year on year, meeting analysts' expectations, and Avis Budget Group reported a revenue decline of 2.4%, falling short of estimates by 2.8%. Heartland Express traded up 2.8% following the results.
Read our full analysis of Heartland Express's results here and Avis Budget Group's results here.
Investors in the ground transportation segment have had steady hands going into earnings, with share prices flat over the last month. RXO is up 7.2% during the same time and is heading into earnings with an average analyst price target of $23.9 (compared to the current share price of $29.1).
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