NYSE$RXO

RXO Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

RXO reported mixed results for Q4 2023, with revenue declining year-over-year but brokerage volume growing double-digits for the third consecutive quarter and sequential gross margin expansion.

RXO's Q4 2023 results showed a decrease in revenue to $1.0 billion compared to $1.1 billion in Q4 2022. However, the brokerage business experienced a 15% volume increase. Net income was $2 million, a turnaround from the $4 million net loss in the same quarter last year.

  • Brokerage volume grew 15% year-over-year, marking the third consecutive quarter of double-digit growth.
  • Full-truckload brokerage volume increased 11% year-over-year, and less-than-truckload volume increased 45% year-over-year.
  • Companywide gross margin was 18.0%, with brokerage gross margin at 14.8%.
  • 97% of brokerage loads were created or covered digitally, up from 87% in the fourth quarter of 2022.

Headline financials

Total Revenue

$978M

Previous: $1.12B-12.7%
EPS (adj)

$0.06

Previous: $0.28-78.6%
Companywide Gross Margin

18.0%

Previous: 19.6%-8.2%
Brokerage Gross Margin

14.8%

Previous: 17.9%-17.3%
Brokerage Volume Change

15.0%

Previous: 4.0%+275.0%
Capital Expenditures

-$18M

Previous: $18M-200.0%
Net Income

$2M

Previous: -$4M+150.0%
Operating Income

$14M

Previous: -$1M+1500.0%
Gross Profit

$176M

Previous: $278M-36.7%
Stock-Based Comp

$3M

Previous: $23M-87.0%

Revenue & EPS history

RXO · Revenue · Quarterly

$978M

Q4 2023-12.7%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

RXO · $954M total across 3 segments · Q3 2023

  • Truck Brokerage
    $591M
  • Last Mile
    $256M
  • Managed Transportation
    $107M

Forward guidance

The company expects brokerage volumes to continue to grow on a year-over-year basis in the first quarter of 2024.

Tailwinds

  • Brokerage volumes expected to grow year-over-year in Q1 2024.
  • Strong brokerage sales pipeline.
  • Focus on profitable market share.
  • Strategic investments in the business.
  • Cost reduction initiatives.

Headwinds

  • Prolonged soft freight environment.
  • Continued cost reductions.
  • Market conditions.
  • Unspecified risks in SEC filings.
  • Potential impacts from the company's separation.

Historical earnings impact

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

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.8%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

9 / 19 earnings

Positive

+9.6%

Q4 2022

Best reaction

-23.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.9%+2.0%+36.9%
Q4 2025+1.9%-1.5%-17.1%
Q3 2025-23.1%-30.9%-18.1%
Q1 2025-5.6%+17.4%+16.5%
Q4 2024-14.9%-14.9%-21.6%
Q3 2024-6.6%-12.9%-10.5%
Q2 2024-3.4%-5.8%-10.5%
Q1 2024+7.4%+9.1%+7.4%
Q4 2023-9.8%-4.6%-7.0%
Q3 2023-5.1%-1.4%+14.6%
Q2 2023-10.4%-8.3%-16.7%
Q1 2023+3.5%+4.9%+19.3%
Q1 2022+3.5%+4.9%+19.3%
Q4 2020-0.9%-1.9%-9.7%
Q2 2022-0.9%-1.9%-9.7%
Q4 2022+9.6%+4.6%+3.8%
Q3 2021+3.7%-1.3%-5.6%
Q4 2021+3.7%-1.3%-5.6%
Q3 2022+3.7%-1.3%-5.6%
Q2 2021
Q1 2021

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro