NYSE$GXO

GXO Logistics Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

GXO Logistics reported strong Q3 2023 results driven by the resilience of its contractual business model and high-caliber operational and financial execution.

GXO Logistics reported an 8% increase in revenue to $2.5 billion, with organic revenue growing by 3%. Net income attributable to GXO increased to $66 million, and adjusted EBITDA grew to $200 million. The company updated its full-year guidance, upgrading adjusted diluted earnings per share and adjusted EBITDA while revising organic revenue growth.

  • Revenue increased by 8% year over year to $2.5 billion, and organic revenue grew by 3%.
  • Net income attributable to GXO grew to $66 million, and adjusted EBITDA grew to $200 million.
  • Cash flow from operations was $243 million, and free cash flow was $191 million.
  • Full-year adjusted diluted earnings per share upgraded from $2.45-$2.65 to $2.55-$2.65.

Headline financials

Total Revenue

$2.47B

Previous: $2.29B+8.0%
EPS (adj)

$0.69

Previous: $0.75-8.0%
Adjusted EBITDA

$200M

Previous: $192M+4.2%
Organic revenue growth

3.0%

Previous: 16.0%-81.3%
Cash flows from operations

$243M

No prior period
Capital Expenditures

-$205M

Previous: -$239M+14.2%
Free Cash Flow

-$139M

Previous: -$176M+21.0%
Net Income

$66M

Previous: $63M+4.8%
Operating Income

$90M

Previous: $72M+25.0%
Gross Profit

-$2.01B

Previous: -$1.89B-6.7%
Cash & Equivalents

$473M

Previous: $434M+9.0%
Total Assets

$9.09B

Previous: $8.81B+3.2%
Stock-Based Comp

$7M

Previous: $8M-12.5%

Revenue & EPS history

GXO Logistics · Revenue · Quarterly

$2.47B

Q3 2023+8%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

GXO Logistics · $2.27B total across 5 segments · Q3 2023

  • Omnichannel retail
    $1.05B+14.4%
  • Food and beverage
    $362M+8.1%
  • Technology and consumer electronics
    $360M+6.5%
  • Industrial and manufacturing
    $263M-4.4%
  • Consumer packaged goods
    $231M+1.8%

Forward guidance

GXO updated its full-year 2023 guidance, upgrading adjusted EBITDA and adjusted diluted earnings per share, while revising organic revenue growth.

Tailwinds

  • Adjusted EBITDA upgraded from $725-$755 million to $730-$755 million.
  • Adjusted diluted earnings per share upgraded from $2.45-$2.65 to $2.55-$2.65.
  • Free cash flow conversion of approximately 30% of adjusted EBITDA reiterated.
  • Secured incremental 2024 revenue from new business wins of $520 million.
  • Sales pipeline remains at approximately $2 billion.

Headwinds

  • Organic revenue growth revised from 6-8% to 2-4%.
  • Macro environment is uncertain.
  • Expectations for a softer peak season.
  • Variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures.
  • The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statements of income and cash flows prepared in accordance with GAAP, that would be required to produce such a reconciliation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.0%

Avg return

Earnings day

+4.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

63%

15 / 24 earnings

Positive

+9.2%

Q4 2025

Best reaction

-15.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.0%+0.8%-2.6%
Q4 2025+9.2%+12.9%-9.5%
Q3 2025-5.0%-7.9%-5.1%
Q1 2025+4.1%+6.5%+10.8%
Q4 2024-15.1%-3.7%-6.1%
Q3 2024-1.5%+2.0%-13.2%
Q2 2024-3.9%-3.2%-3.4%
Q1 2024-1.0%+3.5%-1.1%
Q4 2023-4.6%-3.4%-12.1%
Q3 2023+3.1%+1.4%+8.7%
Q2 2023-4.0%-2.2%-1.5%
Q1 2023+2.8%+5.5%+16.4%
Q4 2022-5.3%-6.6%-13.6%
Q3 2022+2.2%+24.1%+21.2%
Q2 2022+4.5%-3.6%-12.8%
Q1 2021-2.1%-8.2%-11.8%
Q1 2022+4.1%-7.8%-9.1%
Q4 2021+4.3%-1.3%-8.9%
Q3 2020+8.8%+2.9%+1.4%
Q3 2021+6.8%+5.3%+3.6%
Q2 2020+3.0%+22.6%+29.1%
Q2 2021+3.0%+22.6%+29.1%
Q4 2020+3.0%+22.6%+29.1%
Q4 2019+3.0%+22.6%+29.1%
Q1 2020

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