Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles.
Luckily, their overall demand was steady over the past six months as the industry’s 7.1% return has closely followed the S&P 500.
Shares of contract logistics company GXO (NYSE:GXO)
jumped 11.3% in the afternoon session after the company provided impressive preliminary financial forecasts and raised its full-year 2025 guidance for organic revenue growth, adjusted EBITDA, and adjusted diluted EPS. This upward revision reflects better-than-expected performance (volumes and accelerated productivity gains) and anticipated gains from the Wincanton acquisition.
Contract logistics company GXO (NYSE:GXO) announced better-than-expected revenue in Q1 CY2025, with sales up 21.2% year on year to $2.98 billion. On the other hand, next quarter’s revenue guidance of $2.97 billion was less impressive, coming in 2.6% below analysts’ estimates. Its non-GAAP profit of $0.29 per share was 14.5% above analysts’ consensus estimates.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at air freight and logistics stocks, starting with GXO Logistics (NYSE:GXO).
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Contract logistics company GXO (NYSE:GXO) announced better-than-expected revenue in Q1 CY2025, with sales up 21.2% year on year to $2.98 billion. On the other hand, next quarter’s revenue guidance of $2.97 billion was less impressive, coming in 2.6% below analysts’ estimates. Its non-GAAP profit of $0.29 per share was 14.5% above analysts’ consensus estimates.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
