XPO’s fourth-quarter adjusted earnings came in 18% higher year over year, excluding one-off items and real estate gains.
XPO (NYSE: XPO) reported adjusted earnings per share of 88 cents (inclusive of gains) ahead of the market open. That was 12 cents ahead of the consensus estimate. The adjusted EPS number excluded transaction and restructuring costs but included 8 cents per share in gains from the sale of real estate. XPO recorded 21 cents per share in real estate gains in the 2024 fourth quarter.
The fourth-quarter consensus estimate moved down (from 85 cents) after XPO’s intraquarter update, which some analysts construed as worse-than-expected.
Consolidated revenue of $2.01 billion was 4.7% higher y/y and ahead of a $1.95 billion consensus estimate.
Click for full report – “XPO’s January tonnage bucks negative trend”
“By pairing world-class service with our proprietary technology, we’re building durable earnings power unique to our business,” said Mario Harik, chairman and CEO, in a news release. “We’re continuing to execute for market-leading margin expansion in the current environment, while positioning for outsized share and margin gains in a recovery.”
The less-than-truckload unit reported a 0.8% y/y revenue increase to $1.17 billion (in line with management’s guidance of flat to slightly higher). Tonnage per day was down 4.5% y/y (in line with guidance calling for a result similar to the third quarter’s exit rate of down 4.7%). Revenue per hundredweight (yield) was up 5.2% y/y excluding fuel surcharges (compared to guidance of in line with the third quarter’s 5.9% increase).
The fourth-quarter yield metric benefitted from a 3% decline in weight per shipment and a 0.9% increase in length of haul.
Click for full report – “XPO’s January tonnage bucks negative trend”
The LTL unit reported an 84.4% adjusted operating ratio, 180 basis points better y/y, but 170 bps worse than the third quarter. The result was better than the historical sequential deterioration of 200 to 250 bps, and near management’s 84% implied guide.
XPO’s European transportation segment reported a 10.6% y/y increase in revenue to $846 million. Adjusted EBITDA of $32 million was up 18.5% y/y.
Shares of XPO were down 1.4% in pre-market trading on Thursday.
The company will host a call to discuss fourth-quarter results on Thursday at 8:30 a.m. EST.
