GXO stock rose 8% in after-hours on February 15, 2022, after the company reported impressive EPS and revenue beats.
GXO Logistics Reports Fourth Quarter and Full Year 2021 Results
GXO Logistics, Inc. (NYSE: GXO) announced results for the fourth quarter and full-year 2021. GXO Logistics reported Q4 EPS of 73c versus the consensus estimate of 52c. The company reported Q4 revenue of $2.26B versus the consensus estimate of $2.05B.
Malcolm Wilson, chief executive officer of GXO, said, “Following an immensely successful holiday peak season, GXO reported its highest-ever quarterly revenue and adjusted EBITDA1 for the fourth quarter of 2021. We delivered double-digit organic revenue growth in every quarter of 2021 and grew 19% in the fourth quarter. More than ever, customers are demanding innovation, and our combination of industry-leading technology, global scale and world-class talent continues to set GXO apart. We’re pioneering automated and ESG-focused solutions that improve safety and lower the carbon footprint of global supply chains, and we look forward to publishing our first sustainability report later this year. We see significant growth opportunities heading into 2022, as the tailwinds of e-commerce, automation and outsourcing continue unabated. Our new contract wins and sales pipeline are the highest they’ve ever been, which, along with our improved revenue retention rate, position us extremely well to deliver our 8% to 12% organic revenue growth target in 2022. Moreover, we continue to realize benefits from our 2021 acquisition in the U.K. which, in addition to two recent technology customer wins, has already achieved synergies of over $30 million, equivalent to approximately 5% of its sales. With this clear and consistent momentum, we are raising guidance for the full-year, and we intend to outline our long-term targets to the investment community later this year.”
- Fourth quarter revenue of $2.3 billion, up 28%; including organic revenue growth1 of 19%; net income attributable to common shareholders of $56 million; and adjusted EBITDA1 of $167 million
- Full year revenue of $7.9 billion, up 28%; including organic revenue growth1 of 15%; net income attributable to common shareholders of $153 million; and pro forma adjusted EBITDA1 of $633 million
- Full year cash flow from operating activities of $455 million and free cash flow1 of $216 million; equivalent to over 30% of adjusted EBITDA1
- Full year 2022 guidance raised
- Fourth quarter e-commerce revenue up 45% and reverse logistics revenue up 28%
- New customer wins in 2021 expected to contribute incremental revenue of approximately $830 million in 2022, representing approximately 10% of 2021 revenue
- Sales pipeline reaches all-time high of $2.5 billion
- Revenue retention rate increased to mid-to-high 90s since the spin
📺 GXO: Logistics at Full Potential
📉 GXO Stock Technical Analysis
The long-term trend is positive and the short-term trend is neutral. GXO is currently trading in the middle of its 52-week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. GXO is one of the lesser performing stocks in the Air Freight & Logistics industry. All 17 stocks in the same industry do better.
There is support at 78.24 from a horizontal line in the weekly time frame. There is also support at 73.73 from a horizontal line in the daily time frame.
There is a resistance zone ranging from 85.81 to 86.99. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also resistance at 91.83 from a horizontal line in the daily time frame.
Although the technical rating is bad, GXO does present a nice setup opportunity. GXO stock has a Setup Rating of 5 out of 10. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 85.81. Right above this resistance zone may be a good entry point.