GXO LOGISTICS Announces Third Quarter Fiscal Year 2023 Earnings Results
December 12, 2023
🌥️Earnings Overview
GXO LOGISTICS ($NYSE:GXO) released their earnings for the third quarter of the Fiscal Year 2023, ending September 30, 2023. Total revenue was reported at USD 2471.0 million, demonstrating a year-over-year increase of 8.0%. Net income also saw an increase of 4.8% compared to the same period one year prior, coming in at USD 66.0 million.
Share Price
The company’s stock opened at $52.5 and closed at $52.3, representing a slight decrease of 0.6% from its previous closing price of $52.7. The stock movement suggests a lukewarm response from the market to GXO LOGISTICS‘s financial results. Analysts had expected the company to report a better performance due to its strong performance in the previous quarter. GXO LOGISTICS attributed the reduction in profitability to increased operational expenses resulting from an increase in freight activities and other costs related to expanding its operations. The company attributed this growth mainly to an increase in demand for its logistics services and products.
The company also reported positive cash flow for the quarter, indicating that it is in a healthy financial position. GXO LOGISTICS’s CEO voiced optimism about the company’s future prospects, noting that it is well-positioned to capitalize on the increasing demand for logistics services across the industry. The company also expressed its commitment to improving operational efficiencies to ensure that it remains competitive in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gxo Logistics. More…
| Total Revenues | Net Income | Net Margin |
| 9.65k | 202 | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gxo Logistics. More…
| Operations | Investing | Financing |
| 569 | -285 | -246 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gxo Logistics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.09k | 6.27k | 23.4 |
Key Ratios Snapshot
Some of the financial key ratios for Gxo Logistics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.9% | 26.4% | 3.2% |
| FCF Margin | ROE | ROA |
| 2.7% | 6.9% | 2.1% |
Analysis
GoodWhale examined the fundamentals of GXO LOGISTICS and analysed them using our analysis tools. Our Star Chart showed GXO LOGISTICS to be strong in asset, growth, and medium in profitability. It also showed GXO LOGISTICS to be weak in dividend. Additionally, GoodWhale’s Health Score was 8/10 which indicates that GXO LOGISTICS is in a fairly good financial position and is capable of safely riding out any crisis without the risk of bankruptcy. Based on these results, GoodWhale classified GXO LOGISTICS as a ‘cheetah’ type company, which is a company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for high-growth opportunities but who are willing to take the risk of lower profitability may find this company interesting. More…
Peers
In the logistics industry, GXO Logistics Inc. competes with ID Logistics, Wildpack Beverage Inc., Yasuda Logistics Corp., and other companies. The company focuses on providing efficient and cost-effective logistics solutions to its clients. It has a strong network of warehouses and distribution centers across the United States. The company has a team of experienced and qualified professionals who are dedicated to providing the best possible services to their clients.
– ID Logistics ($LTS:0QAG)
DHL Logistics has a market cap of 1.53B as of 2022, a Return on Equity of 16.87%. The company is a leading provider of logistics and transportation services. It offers a wide range of services including air and ocean freight, warehousing, and e-commerce fulfillment.
– Wildpack Beverage Inc ($TSXV:CANS)
Wildpack Beverage Inc is a company that manufactures and distributes alcoholic beverages. The company has a market capitalization of 15.25 million as of 2022 and a return on equity of -19.12%. Wildpack has a portfolio of products that includes beer, wine, and spirits. The company’s products are available in a variety of channels, including retail, on-premise, and online. Wildpack is headquartered in Los Angeles, California.
– Yasuda Logistics Corp ($TSE:9324)
Yasuda Logistics Corp is a Japanese company that provides logistics services. The company has a market cap of 26.73B as of 2022 and a Return on Equity of 3.82%. Yasuda Logistics Corp is a publicly traded company on the Tokyo Stock Exchange.
Summary
Investors looking to add GXO LOGISTICS to their portfolios can look forward to strong earnings growth. The company reported a total revenue of USD 2471.0 million, representing an 8.0% increase from the same period last year, along with a net income of USD 66.0 million, a 4.8% increase year over year. The company’s consistent growth and strong financials make it a great investment opportunity.
Furthermore, GXO LOGISTICS has demonstrated its ability to weather market fluctuations and achieve strong returns. With all these factors taken into account, GXO LOGISTICS looks to be a great investment opportunity.
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