Overview

* RXO Q2 revenue of $1.42 bln missed analyst expectations, per LSEG data

* Adjusted EPS of $0.04 beat analyst estimates, per LSEG data

* Less-than-truckload volume grew 45%, driving brokerage growth

Outlook

* Company expects Q3 adjusted EBITDA between $33 mln and $43 mln

* RXO anticipates flat brokerage volume growth year-over-year in Q3

* Company sees Q3 brokerage gross margin between 13.5% and 15.0%

Result Drivers

* LESS-THAN-TRUCKLOAD VOLUME - 45% year-over-year growth in less-than-truckload volume drove brokerage growth

* UNIFIED OPERATIONS - Early benefits from unified carrier coverage operations contributed to brokerage gross margin of 14.4%

* LAST MILE GROWTH - Last Mile segment achieved 17% year-over-year stop growth, marking fourth consecutive quarter of double-digit growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.42 $1.44

Revenue bln bln (16

Analysts

)

Q2 Beat $0.04 $0.02

Adjusted (20

EPS Analysts

)

Q2 EPS -$0.05

Q2 $7 mln

Adjusted

Net

Income

Q2 $38 mln

Adjusted

EBITDA

Q2 2.7%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 15 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the ground freight & logistics peer group is "buy."

* Wall Street's median 12-month price target for RXO Inc ( RXO ) is $17.50, about 11.8% above its August 6 closing price of $15.44

* The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 42 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)