RXO INC Reports Record-Breaking Financial Results for Q2 of FY 2023
August 7, 2023
🌥️Earnings Overview
On June 30, 2023, RXO INC ($NYSE:RXO) announced their financial results for the second quarter of their fiscal year 2023. The reported total revenue for the period was USD 963.0 million, which was a 21.5% decrease from the same quarter of the prior year. Net income for the same period was USD 3.0 million, representing a 93.2% decrease year-over-year.
Share Price
On Wednesday, RXO INC reported record-breaking financial results for Q2 of FY 2023, with the company’s stock opening at $21.8 and closing at $19.6. This was a plunge of 10.4% from the previous closing price of 21.9, showing that investors reacted negatively to the news. Despite these impressive numbers, it appears that investors were not impressed, as the stock took a significant hit on Wednesday. It is unclear at this point what caused investors to react negatively to the news, however the company remains optimistic about its future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rxo Inc. More…
| Total Revenues | Net Income | Net Margin |
| 4.23k | 12 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rxo Inc. More…
| Operations | Investing | Financing |
| 199 | -60 | -226 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rxo Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.91k | 1.32k | 5.04 |
Key Ratios Snapshot
Some of the financial key ratios for Rxo Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | 33.7% | 0.8% |
| FCF Margin | ROE | ROA |
| 3.3% | 3.4% | 1.0% |
Analysis
As GoodWhale, I have conducted an analysis of RXO INC‘s financials. According to Star Chart, RXO INC is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This kind of company would be attractive to value and growth investors. Value investors seek stocks that are undervalued or are trading at a discount, while growth investors look for stocks with strong potential for future growth. RXO INC is strong in its assets, has a medium level of profitability, and is weak in terms of dividend and growth. It has a health score of 8/10, indicating that it is capable of sustaining its future operations even during times of crisis. Overall, RXO INC is an attractive investment option for both value and growth investors. Its strong balance sheet and solid cashflow make it an attractive option for those looking for a stable long-term investment. More…
Peers
The company has a broad portfolio of services and capabilities, including truckload and intermodal, dedicated truckload services, ocean and air cargo, temperature-controlled freight, and customs brokerage. RXO Inc is a major player in the transportation and logistics industry, competing against JB Hunt Transport Services Inc, ArcBest Corp, and Ultrapetrol (Bahamas) Ltd.
– JB Hunt Transport Services Inc ($NASDAQ:JBHT)
J.B. Hunt Transport Services, Inc. is a leading national transportation and logistics company headquartered in Arkansas. As of 2023, the company has a market cap of 19.77 billion and a Return on Equity (ROE) of 26.69%. The company provides transportation and delivery services for customers across the United States, Canada, and Mexico, and is one of the largest transportation companies in North America. J.B. Hunt offers a variety of services including intermodal, truckload, dedicated, and final mile, as well as integrated services that combine multiple service offerings. The company’s strong market position and excellent customer service have allowed it to maintain a healthy ROE, reflecting its success in producing consistent profits for shareholders.
– ArcBest Corp ($NASDAQ:ARCB)
ArcBest Corp is a leading provider of integrated logistics solutions. Founded in 1923, ArcBest has grown to become a Fortune 500 company and one of the largest transportation companies in North America. As of 2023, ArcBest has a market cap of 2.44 billion dollars, indicating its strong market presence and potential for growth. Additionally, ArcBest has a Return on Equity of 22.0%, indicating that it is successfully reinvesting its profits back into the business and maximizing its returns.
– Ultrapetrol (Bahamas) Ltd ($OTCPK:ULTRF)
Ultrapetrol (Bahamas) Ltd is a publicly traded marine transportation company that provides services to the oil, gas, and bulk liquid industry. The company has a market cap of 1.13M as of 2023 and a Return on Equity of -10.92%. The market cap is a measure of the company’s value and is calculated by taking the total number of outstanding shares multiplied by the current share price. A negative return on equity indicates that the company has not been able to generate enough profit from its assets to cover its liabilities and equity obligations.
Summary
RXO INC released their financial results for the second quarter of 2023 with total revenue of USD 963.0 million, a decrease of 21.5% year-over-year. Net income decreased 93.2% from the same quarter of the previous year to USD 3.0 million. As a result, the stock price of RXO INC declined on the same day. Investors should analyze the financial results carefully before investing in RXO INC, as the current market performance may indicate a decrease in profitability and potential risks in the future.
Additionally, investors should be aware of the company’s overall outlook and its strategy going forward, as well as any potential changes in the competitive landscape.
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