RXO Inc. reports Q1 EPS (3c), consensus (2c)

Reports Q1 revenue $1.4B, consensus $1.49B. “Our technology team has been working diligently to integrate the best features of the legacy Coyote technology platform into RXO Connect. Today, I’m pleased to announce a critical integration milestone – carrier and coverage operations are now happening in one system, which will enable us to leverage our scale and realize future cost-of-purchased-transportation synergies,” said CEO Drew Wilkerson. “We have made significant progress with the integration of Coyote and are again raising our synergy estimate. We now expect cash synergies to be more than $70M. This estimate does not include cost-of-purchased-transportation opportunities, which we expect will be significant. In Q1, RXO grew less-than-truckload brokerage volume by 26% year-over-year and saw continued momentum within Last Mile, which achieved stop growth of 24% year-over-year. RXO is well positioned for the long term because of our larger scale, exceptional service, comprehensive solutions, industry-leading innovation and deep customer relationships.”