Less-than-truckload carrier XPO rode higher volumes and better pricing to a third-quarter beat on Monday.
XPO (NYSE: XPO) reported adjusted earnings per share of 88 cents before the market opened. The result was 25 cents better than the consensus estimate but 7 cents lower year over year (y/y). The adjusted number excluded transaction and restructuring costs.
“Our third quarter results exceeded expectations, with solid growth in revenue and profitability, and strong forward momentum,” said CEO Mario Harik.
Link to full story – XPO ups growth spending after Yellow’s downfall
Revenue in the company’s LTL unit increased 2% y/y to $1.23 billion. Tonnage per day was 3% higher and revenue per hundredweight, or yield, increased 6% excluding fuel surcharges.
Compared to the second quarter, XPO’s shipments per day increased 5%, in part due to Yellow’s exit. Yield (excluding fuel surcharges) was also up 6% from the second quarter. The segment recorded an 86.2% adjusted operating ratio, which was 140 basis points better sequentially.
The OR normally deteriorates by 230 bps from the second to third quarter. The company outperformed the mark by 370 bps.
“It’s exciting to take large steps forward across the business as we execute our plan. We’re making excellent progress, and I’m confident that we’re still in the early innings of realizing XPO’s full potential,” Harik continued.
XPO’s European transportation segment recorded a 2% y/y revenue increase to $752 million and a 5.8% adjusted EBITDA margin, which was down 10 bps y/y.
XPO will host a call at 8:30 a.m. EDT Monday to discuss third-quarter results.
Link to full story – XPO ups growth spending after Yellow’s downfall
More FreightWaves articles by Todd Maiden
- ArcBest prudent in approach to new freight opportunities
- Auction houses to liquidate Yellow’s tractors, trailers
- Heartland books Q3 loss, cuts unprofitable customers and lanes
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
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.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN 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