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TD Cowen's Jason Seidl raised their price target on Gxo Logistics (NYSE: GXO) by 2.6% from $78 to $80 on 2024/04/25. The analyst maintained their Strong Buy rating on the stock.

Ahead of the 2024/04/08 release of Gxo Logistics' Q1 2024 earnings report, the company issued preliminary results.

Seidl told readers that the preliminary numbers were in line with analysts' estimates. The current consensus EPS estimate for Gxo Logistics' Q1 are EPS of $0.44 and revenue of $2.37B.

Management updated its FY 2024 guidance to account for the Wincanton acquisition.

Footnotes

Among the preliminary results announced were:

• Revenue of approximately $2.5 billion;
• Net loss of approximately $36 million, primarily driven by a $63 million expense associated with legacy litigation;
• Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA2”) of approximately $154 million;
• Cash and cash equivalents of approximately $423 million;
• Long-term debt, including current debt of $26 million, of approximately $1,637 million; and
• New business wins in the quarter of approximately $250 million, including new business with Boeing, Guess, Michelin and WH Smith.

Management FY 2024 guidance adjusted for the Wincanton deal:

• Organic revenue growth of 2% to 5%. (Unaffected by the Wincanton deal).
• Adjusted EBITDA of $805M to $835M. ($760M to $790M without the Wincanton deal).
• Adjusted diluted EPS of $2.73 to $2.93. ($2.70 to $2.90 without the Wincanton deal).
• Free cash flow conversion of 30% to 40% of adjusted EBITDA. (Unaffected by the Wincanton deal).