Contract logistics provider GXO Logistics' (GXO 2.61%) stock is down 47% over the last three years, 23% over the last year, and 12% in 2025 alone. At this point, many investors would be forgiven for throwing in the towel and concluding that there's something fundamentally wrong with the company.
Steve Weiss, Founder and Managing Partner of Short Hills Capital Partners joins CNBC's “Halftime Report” to explain why he's selling out of GXO after holding it for years.
A day after plunging 15% due to a weak 2025 outlook, shares of GXO Logistics (GXO 7.60%) are rallying. The stock is up 8% as of 2:30 p.m.
GXO Logistics, Inc. (NYSE:GXO ) Q4 2024 Earnings Conference Call February 13, 2025 8:30 AM ET Company Participants Malcolm Wilson - Chief Executive Officer Baris Oran - Chief Financial Officer Kristine Kubacki - Chief Strategy Officer Conference Call Participants Joe Hafling - Jefferies Scott Schneeberger - Oppenheimer Chris Wetherbee - Wells Fargo Bascome Majors - Susquehanna International Ariel Rosa - Citi Kevin Gainey - Thompson Davis Uday Khanapurkar - TD Cowen Operator Welcome to the GXO Fourth Quarter and Full-Year 2024 Earnings Conference Call and Webcast. My name is Rob, and I'll be your operator for today's call.
GXO Logistics (GXO -15.13%) beat top- and bottom-line expectations for the fourth quarter but provided little reason for investors to get excited about what's to come in 2025.
GXO Logistics (GXO -0.56%), a leader in the supply chain solutions industry, unveiled its earnings for the fourth quarter of 2024 on Feb. 12. The company reported an adjusted earnings per share (EPS) of $1.00, surpassing analysts' expectations of $0.94.
GXO Logistics (GXO) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.70 per share a year ago.
GXO Logistics (GXO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Investors need to pay close attention to GXO Logistics (GXO) stock based on the movements in the options market lately.
GXO Logistics' recurring revenue, industry-leading automation, and defensive contract structures provide strong visibility, making it well-positioned to thrive across economic cycles. Organic growth is rebounding, margins are expanding, market share is increasing, and GXO remains on track to achieve its 2027 targets, fueled by e-commerce, automation, and outsourcing trends. Short-term uncertainty surrounding the new CEO, regulatory review, and rejected buyout bid has created a generational buying opportunity, despite having no tangible impact on GXO's underlying fundamentals.
GXO is down 24% YoY and 30% from its 2024 peak due to rising costs and CEO departure concerns. Despite challenges, GXO has strong top-line growth, with revenues up 28% YoY and a growing $2.4B backlog. Margins are under pressure from high CAPEX, acquisitions, and inflation, but technological investments aim to improve efficiency long-term.
It's been an excellent year for the market, with the S&P 500 up nearly 27% on the year at the time of writing. Unfortunately, it hasn't been such a great year for investors in copper miner Freeport-McMoRan (FCX -1.16%) (up 1% on the year), contract logistics company GXO Logistics (GXO -0.72%) (down 19%), and advanced composites manufacturer Hexcel (HXL -0.22%) (down 14%).