GXO Logistics Inc (NYSE: GXO) shares plummeted 9.61% in the intraday trading session on Thursday, following the company's mixed fourth-quarter 2024 earnings report and weaker-than-expected guidance for the full year 2025.

The supply chain solutions provider reported record revenue of $3.3 billion for Q4 2024, beating analyst estimates of $3.22 billion and reflecting a 26.9% year-over-year increase. However, adjusted earnings per share (EPS) of $1.00 fell short of the consensus forecast of $0.94, potentially contributing to the stock's selloff.

While GXO achieved full-year 2024 revenue of $11.7 billion, up 20% from the previous year, net income declined to $138 million from $233 million in 2023, signaling higher operational costs or one-time expenses impacting profitability. Furthermore, free cash flow decreased by 15.9% year-over-year to $127 million, raising concerns about liquidity and cash management.

Looking ahead, GXO provided guidance for 2025 that underwhelmed investors. The company expects organic revenue growth of 3% to 6%, adjusted EBITDA of $840 million to $860 million, and adjusted diluted EPS of $2.40 to $2.60. These projections fell short of analyst expectations, with the consensus EPS estimate standing at $3.10.

The disappointing guidance and weaker-than-expected earnings, despite solid revenue growth, appear to have triggered the sharp sell-off in GXO stock. Investors may be concerned about the company's ability to control costs and maintain profitability, as well as the potential impact of macroeconomic challenges on its growth prospects.