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GXO comes out of the gate with solid third-quarter results

In first reporting quarter since spinoff, contract logistics company beats consensus on EPS, raises full-year guidance

First reporting quarter goes well for GXO (Photo: GXO)

In its first reporting quarter as a stand-alone company, GXO Logistics Inc. posted on Monday 56 cents in third-quarter adjusted diluted earnings per share, above consensus estimates of 53 cents per share and above the 23 cents per share figure when the business was still part of XPO Logistics Inc.

Revenue rose to $2 billion, compared with $1.6 billion in the 2020 quarter when the contract logistics business that became GXO was part of XPO (NYSE:XPO). XPO spun off GXO in August. GXO (NYSE:GXO) is the world’s largest pure-play contract logistics provider.

GXO reported adjusted net income of $65 million. Adjusted net income was reported at $27 million in the 2020 quarter.

Adjusted earnings before interest, taxes, depreciation and amortization, a non-GAAP measure, increased to $163 million for the third quarter, compared with $142 million in pro forma adjusted EBITDA for the same period in 2020. 


GXO also raised its pro forma full-year 2021 financial targets, with revenue forecast at $7.6 billion to $7.8 billion from $7.5 to $7.7 billion, and adjusted EBITDA of between $607 million and $637 million, up from $605 million to $635 million. The Greenwich, Connecticut-based company’s 2022 guidance remains unchanged at 8% to 12% revenue growth and adjusted EBITDA between $705 million and $740 million.

GXO shares, which rose nearly 2.3% in the regular session, were down fractionally in after-hours trading. 

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.