RXO Inc. reports Q3 adjusted EPS 5c, consensus 4c

Reports Q3 revenue $1.04B, consensus $975.56M. CEO Drew Wilkerson said, “In Q3, our focus on execution enabled us to achieve a solid 13.7% gross margin in our Brokerage business, despite the prolonged soft freight market. Momentum continued within our complementary services. In Managed Transportation, we secured more than $300 million in new business and continue to have a strong sales pipeline of more than $1.3B in freight under management. In Last Mile, we grew stops by 11% year-over-year, an acceleration from our second-quarter growth rate. We remain focused strategically investing in our business while controlling costs. Closing the Coyote acquisition in the third quarter makes RXO the third-largest freight broker in North America. Our larger scale enables us to provide customers with more capacity and carriers with more freight. The integration is progressing nicely and we now expect to achieve at least $40M in cost synergies. The additional savings will be primarily driven by integrating technology platforms and reducing vendor spend. We will continue to provide our customers with superior service, comprehensive solutions, continuous innovation and deep relationships.”