XPO (NYSE:XPO) Posts Earnings Results, Beats Expectations By $0.22 EPS

XPO (NYSE:XPO) released its earnings results on Thursday. The transportation company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $1.48 by $0.22, FiscalAI reports. The company had revenue of $2.35 billion for the quarter, compared to analysts’ expectations of $2.28 billion. XPO had a return on equity of 26.21% and a net margin of 4.19%.The business’s revenue for the quarter was up 13.2% compared to the same quarter last year. During the same period in the previous year, the business 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 Stock Performance

XPO stock traded up $0.35 during midday trading on Thursday, reaching $199.73. 2,382,928 shares of the company’s stock traded hands, compared to its average volume of 1,572,960. The firm has a market capitalization 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. The company has a 50-day moving average price of $210.31 and a two-hundred day moving average price of $198.92. XPO has a 52 week low of $116.68 and a 52 week high of $232.05. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.99 and a current ratio of 0.99.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Bank of America boosted their target price on shares of XPO from $244.00 to $246.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. TD Cowen boosted their target price on XPO from $192.00 to $224.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Jefferies Financial Group increased their price target on XPO to $275.00 and gave the stock a “buy” rating in a research note on Wednesday, April 22nd. Weiss Ratings lowered XPO from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday. Finally, Raymond James Financial lowered their price objective on XPO from $233.00 to $225.00 and set an “outperform” rating on the stock in a research note on Monday, July 13th. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $219.76.

Insider Activity 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 value of $517,464.00. Following the completion of the transaction, the director directly owned 4,849 shares of the company’s stock, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.87% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC increased its position in shares of XPO by 13.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 494 shares of the transportation company’s stock valued at $68,000 after buying an additional 60 shares during the period. UMB Bank n.a. boosted its position in shares of XPO by 4.4% in the fourth quarter. UMB Bank n.a. now owns 1,483 shares of the transportation company’s stock valued at $202,000 after acquiring an additional 63 shares during the period. Blair William & Co. IL boosted its position in shares of XPO by 1.4% in the fourth quarter. Blair William & Co. IL now owns 4,927 shares of the transportation company’s stock valued at $670,000 after acquiring an additional 70 shares during the period. Vise Technologies Inc. grew its stake in XPO by 3.4% during the third quarter. Vise Technologies Inc. now owns 2,301 shares of the transportation company’s stock valued at $297,000 after acquiring an additional 76 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in XPO by 35.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the transportation company’s stock worth $42,000 after acquiring an additional 88 shares during the period. Institutional investors own 97.73% of the company’s stock.

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.