The analyst expects continued new business wins to drive Q2 2023 revenue growth.

However, Schneeberger is cautious about the slowing consumer discretionary activity impacting transactional volume. 

Consequently, the analyst revised the Q2 organic revenue growth outlook to 4% y/y from 6% Y/Y, expecting GXO to be the only transportation/ logistics company to grow revenue in Q2 and 2023. 

Nevertheless, the analyst increased Q2 adjusted EBITDA estimate to $178 million (from $172 million vs. a consensus of $178 million), expecting Q2 margin improvement from a decline in initial variable expense, improving efficiency and Clipper acquisition integration synergies.

Schneeberger maintained 2023 and 2024 adjusted EBITDA at $730 million (vs. consensus: $730 million) and $802 million (vs. consensus: $825 million).

Price Action: GXO shares are trading higher by 0.23% at $66.39 on the last check Wednesday.