RXO’s earnings still coming out, had solid profitable quarter

RXO, a publicly-traded company on the brink of being acquired by C.H. Robinson, released its earnings for the third quarter, painting a mostly positive picture. The company did not hold an earnings call with analysts due to the pending deal. RXO's revenue for the third quarter was $1.9 billion, up from $1.4 billion a year ago and $1.8 billion in the second quarter.

Gross margin was down slightly at 14.6%, but improved to 13.9% in the third quarter, up from 12.3% in the second quarter. Adjusted EBITDA improved to $51 million, surpassing the forecast of $35 million to $45 million. CEO Drew Wilkerson expressed excitement about the company's momentum. RXO reported an adjusted net income of 2 cents per share in the third quarter, up from 6 cents per share in the second quarter.

The company made money for the second consecutive quarter, a rarity in its recent financial history. Brokerage volume increased by 2% from the previous year, and truckload volume grew all three months of the quarter, with the spot market segment accounting for 51% of volume. LTL volume also increased by 2% from the previous year.

C.H. Robinson's acquisition of RXO is seen as beneficial, although Wall Street analysts are cautiously optimistic following the Montgomery deal.