Cost InitiativesEvidence of the cost initiatives from the Coyote acquisition are hard to find in the model, even though cost synergies are expected to be significant.
Earnings DeclineThe stock pullback stems from concerns on the speed and magnitude of decline in Legacy RXO/Coyote earnings, Coyote’s legacy contract to UPS (and its Amazon business), and prolonged freight market weakness.
Guidance And Market ConditionsQ1 guidance calls for brokerage volume declines of mid-to-high-single digits despite more than doubling brokerage biz with Coyote acquisition.