RXO raises May truckload gross profit outlook after market tightening

RXO (NYSE: RXO) now expects its May truckload gross profit per load to be at least flat compared to April, reversing its previous outlook for a decline in May.

The transportation solutions company had indicated on its May 7 first-quarter earnings call that it expected truckload gross profit per load to decline in May.

"Last week, market conditions tightened even further, exacerbated by CVSA International Roadcheck. RXO stayed close to our customers and won significant spot opportunities, helping to more than offset the squeeze on our contractual book of business," said Jared Weisfeld, RXO's chief strategy officer.

Spot increased as a percentage of the company's brokerage truckload volume in the first two weeks of May compared to April.

RXO also reported that its April full-truckload volume outperformed the market. The company's truckload volume declined approximately 2% year-over-year in April, representing an improvement from the first quarter and outperforming the Cass Freight Index by more than 200 basis points. The Cass Freight Index declined more than 4% year-over-year in April.

The company made the announcement ahead of an investor conference where Weisfeld is speaking. RXO provides asset-light transportation solutions including truck brokerage services, managed transportation and last mile delivery.

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