Analysts Are Updating Their GXO Logistics, Inc. (NYSE:GXO) Estimates After Its Third-Quarter Results

Shareholders might have noticed that GXO Logistics, Inc. (NYSE:GXO) filed its quarterly result this time last week. The early response was not positive, with shares down 9.6% to US$50.84 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$3.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.1% to hit US$0.51 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GXO Logistics after the latest results.

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Taking into account the latest results, the most recent consensus for GXO Logistics from 14 analysts is for revenues of US$14.0b in 2026. If met, it would imply a decent 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 175% to US$2.14. Before this earnings report, the analysts had been forecasting revenues of US$14.0b and earnings per share (EPS) of US$2.15 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for GXO Logistics

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$63.94. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on GXO Logistics, with the most bullish analyst valuing it at US$68.00 and the most bearish at US$58.00 per share. This is a very narrow spread of estimates, implying either that GXO Logistics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that GXO Logistics' revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% annually. So it's pretty clear that, while GXO Logistics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$63.94, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple GXO Logistics analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with GXO Logistics (including 1 which is potentially serious) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.