XPO (NYSE:XPO) Releases Earnings Results, Beats Estimates By $0.22 EPS

XPO (NYSE:XPO) issued its quarterly earnings data on Thursday. The transportation company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.22, FiscalAI reports. The firm had revenue of $2.35 billion during the quarter, compared to the consensus estimate of $2.28 billion. XPO had a return on equity of 26.21% and a net margin of 4.19%.The company’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.05 EPS.

Here are the key takeaways from XPO’s conference call:

• Record Q2 results: Revenue rose 13% year over year to $2.4 billion, while adjusted EBITDA excluding real-estate gains increased 25% to $425 million and adjusted diluted EPS rose 56% to $1.64.
• North American LTL adjusted operating ratio improved 300 basis points to a record 79.9%; management now expects full-year improvement of at least 200 basis points, versus its prior 100–150 basis-point target, and an operating ratio below 81% in Q3.
• Freight trends strengthened through the quarter, with July tonnage and shipments both up more than 6% year over year. Management expects mid-single-digit Q3 tonnage growth, supported by market-share gains, improving industrial demand, and some potential truckload-to-LTL conversion.
• Productivity initiatives exceeded targets, improving productivity by nearly 2.5 points year over year. AI-enabled route optimization and trailer-loading technology are reducing miles, improving load quality, and lowering pilot-site damage rates by 50%.
• Labor and benefit inflation remain cost pressures, with overall inflation estimated in the mid-single-digit range and driver hiring conditions tightening; management expects to offset these pressures primarily through productivity and labor adjustments.

XPO Trading Up 0.2%

XPO stock traded up $0.35 during midday trading on Thursday, hitting $199.73. The stock had a trading volume of 2,382,928 shares, compared to its average volume of 1,572,958. The company’s 50-day moving average price is $210.31 and its 200 day moving average price is $198.92. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.99 and a quick ratio of 0.99. The firm has a market cap of $23.45 billion, a PE ratio of 68.40, a price-to-earnings-growth ratio of 2.35 and a beta of 1.85. XPO has a 12-month low of $116.68 and a 12-month high of $232.05.

Wall Street Analyst Weigh In

XPO has been the subject of several recent research reports. Wells Fargo & Company raised their price target on XPO from $235.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, June 5th. Benchmark upped their price objective on XPO from $220.00 to $240.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Weiss Ratings lowered XPO from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday. Susquehanna lifted their price objective on XPO from $212.00 to $214.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Finally, Barclays boosted their target price on shares of XPO from $195.00 to $250.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, XPO has an average rating of “Moderate Buy” and a consensus target price of $219.76.

Insider Buying and Selling at XPO

In other news, Director Allison Landry sold 2,400 shares of the firm’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $215.61, for a total transaction of $517,464.00. Following the sale, the director owned 4,849 shares in the company, valued at $1,045,492.89. This trade represents a 33.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.87% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On XPO

Several institutional investors have recently added to or reduced their stakes in the business. Compound Planning Inc. grew its holdings in XPO by 12.5% in the 4th quarter. Compound Planning Inc. now owns 2,320 shares of the transportation company’s stock valued at $315,000 after buying an additional 258 shares during the period. Corient Private Wealth LLC increased its stake in shares of XPO by 116.1% during the 4th quarter. Corient Private Wealth LLC now owns 9,043 shares of the transportation company’s stock valued at $1,229,000 after acquiring an additional 4,858 shares during the last quarter. First Citizens Bank & Trust Co. lifted its holdings in shares of XPO by 2.1% during the 4th quarter. First Citizens Bank & Trust Co. now owns 11,378 shares of the transportation company’s stock worth $1,546,000 after acquiring an additional 229 shares during the period. XTX Topco Ltd lifted its holdings in shares of XPO by 224.3% during the 4th quarter. XTX Topco Ltd now owns 24,204 shares of the transportation company’s stock worth $3,290,000 after acquiring an additional 16,741 shares during the period. Finally, Greenstone Partners & Co. LLC acquired a new stake in shares of XPO in the fourth quarter worth approximately $26,326,000. 97.73% of the stock is currently owned by institutional investors and hedge funds.

About XPO

XPO Logistics, Inc is a global provider of transportation and logistics services, offering a broad portfolio of solutions designed to optimize supply chains for businesses of all sizes. The company’s operations span freight brokerage, less-than-truckload (LTL) shipping, full truckload transportation, last-mile delivery, contract logistics and global forwarding. XPO aims to leverage advanced technology and operational expertise to drive efficiency, visibility and reliability across end-to-end supply-chain networks.

In its freight brokerage segment, XPO connects shippers to a network of carriers through digital platforms that facilitate rate comparisons, booking, tracking and settlement.