GXO Logistics Q1 Earnings and Market Reaction
GXO Logistics (NYSE: GXO) reported first-quarter earnings on Wednesday, reaching $3.3 billion in revenue, which exceeded expectations of $3.22 billion and represented a 10.8% increase year-over-year. Adjusted earnings per share rose to $0.50 from $0.29. Following Amazon’s announcement of its new logistics services for third parties, GXO’s stock fell 18% on Monday, indicating investor concerns about competition.
CEO Patrick Kelleher downplayed Amazon’s entry into the logistics market, suggesting that GXO’s focus on highly customized warehouse solutions sets it apart. He argued that the contract logistics industry, valued at $500 billion, has ample opportunities for growth despite new entrants. GXO has raised its full-year guidance for adjusted EBITDA to $935 million-$975 million and adjusted EPS to $2.90-$3.20, expecting organic growth of 4%-5% for the year.
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