GXO Logistics Fell Sharply Today, But a Turnaround Could Be Coming

GXO stock has underperformed since going public five years ago.

Under CEO Patrick Kelleher, the company is focused on organic growth and margin expansion.

GXO will share its plans at an Investor Day conference on Nov. 16.

GXO Logistics (NYSE: GXO) was spun off from XPO five years ago, but the business has disappointed investors during that time, and the stock has been essentially flat since going public.

In the last year, CEO Patrick Kelleher has taken the helm and is repositioning the company for organic growth, rather than as a roll-up operator . Those efforts are showing results, but investors are still frustrated as the stock's 10% decline today shows after it reported second-quarter earnings yesterday.

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Let's take a look at the results before discussing GXO's prospects for a turnaround.

GXO reported revenue growth of 4.3%, including organic revenue growth of 3.4%, to $3.44 billion, just shy of the consensus of $3.46 billion.