Greenwich, Connecticut-based XPO reported first-quarter results that were well ahead of analysts’ expectations on Thursday as its less-than-truckload unit won share at above-market rates.
XPO (NYSE: XPO) reported adjusted earnings per share of $1.01, 13 cents ahead of the consensus estimate and 28 cents higher year over year. The adjusted EPS result excluded transaction and restructuring costs. A lower tax rate was roughly a 5-cent tailwind in the quarter.
Consolidated revenue of $2.1 billion was 7% higher y/y and above the $2.04 billion consensus estimate.
Click for full story – “XPO could soon see sub-80% ORs”
The company’s LTL unit reported a 5% y/y revenue increase to $1.23 billion. Revenue was 6% higher on a per-day comparison. A slight tonnage increase coupled with a 5% increase in revenue per hundredweight (yield) drove the result. (Yield was up 4% y/y excluding fuel surcharges.)
The change in tonnage was driven by a 3% increase in daily shipments, which was mostly offset by a 2.7% decline in weight per shipment. Lower shipment weights and a 1% increase in length of haul positively impacted the yield metric. Revenue per shipment (excluding fuel) increased 1% y/y.
The company credited “profitable market share gains” and “above-market pricing growth” for the improvements.
Click for full story – “XPO could soon see sub-80% ORs”
The segment reported an 83.9% adjusted operating ratio (inverse of operating margin), which was 200 basis points better y/y and 50 bps better than the seasonally stronger fourth quarter. (The unit normally records 50 bps of sequential deterioration in the first quarter.)
Sequentially, revenue per day increased 3% from the fourth quarter as tonnage per day was up 5% and yield slid 2%. (The yield metric was negatively impacted by a sequential increase in shipment weights and a decline in length of haul.)
XPO’s European transportation segment reported an 11% y/y increase in revenue to $868 million. Adjusted EBITDA of $33 million was 3% higher y/y.
“We’re continuing to deliver robust incremental margins and industry-leading operating ratio improvement, with the greatest upside still ahead,” said Mario Harik, chairman and CEO, in a news release. “We have a clear path to compounding earnings growth and accelerating free cash flow generation, with returns amplified as freight demand recovers.”
Shares of XPO were up 1% in premarket trading on Thursday.
XPO will host a call at 8:30 a.m. EDT on Thursday to discuss first-quarter results.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now