- XPO Logistics, Inc XPO joint preliminary results for the third quarter of FY22 and long-term goals.
- XPO expects revenue of $3.04 billion, below consensus of $3.1 billion. Operating income is expected to be between $181 million and $185 million.
- XPO sees Adjusted EBITDA in the range of $348 million to $352 million.
- Also read: Proposed spin-off from XPO Logistics RXO raises $355 million via debt offering
- The partial earnings release comes ahead of the first investor day under new CEO Mario Harik on October 18 and the spin-off of its high-tech truck brokerage business on November 1 into a new public company called RXO, CNBC reported.
- During an interview in March, XPO chairman and former CEO Brad Jacobs said he hoped the company’s transformation into a pure-play trucker would eliminate the so-called “conglomerate discount” on XPO stock.
- For the truck brokerage segment, which will become RXO, the company expects revenue to decline 2% year over year and increase volume 9%. Truck Brokerage connects truckers with customers in the on-demand spot market.
- XPO has also issued targets for XPO and RXO to be achieved by FY27.
- The trucking company delivered revenue growth averaging 6% to 8% per year and annualized adjusted EBIDTA growth of 11% to 13%.
- XPO expects the brokerage firm to achieve Adjusted EBITDA of $475 million to $525 million by 2027 with annualized spend of about 1% of revenue 202-2027.
- “The long-term guidance we have issued shows that we expect continued strong performance for both XPO and RXO,” said Harik.
- Price promotion: XPO shares closed up 3.59% at $48.48 on Monday.
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