Less-than-truckload carrier XPO handily beat first-quarter expectations Friday ahead of the market open.
XPO (NYSE: XPO) reported adjusted earnings per share of 81 cents for the 2024 first quarter, 14 cents ahead of the consensus estimate and 25 cents higher year over year (y/y). The adjusted result excluded transaction and restructuring costs of 25 cents per share.
“Our strong first quarter financial results exceeded expectations, giving us a solid start to 2024,” said CEO Mario Harik in a news release.
Click for full report – “XPO sees Q1 strength carrying forward”
Revenue in the company’s LTL segment increased 9% y/y to $1.22 billion as tonnage per day increased 3% and revenue per hundredweight, or yield, was up 7% (10% higher excluding fuel surcharges). The tonnage increase was the combination of a 5% increase in daily shipments, which was partially offset by a 2% decline in weight per shipment.
Compared to the fourth quarter, tonnage increased 2%, with yield declining 1% excluding fuel.
The unit recorded an 85.7% adjusted operating ratio, 390 basis points better y/y and 80 bps improved from the fourth quarter. The sequential OR change in the quarter was 120 bps better than the normal change rate.
Purchased transportation expense as a percentage of revenue was down 250 bps y/y as the company continues to outsource fewer linehaul miles.
Adjusted earnings before interest, taxes, depreciation and amortization in the unit was $255 million, a 40% y/y increase.
XPO’s European transportation segment saw revenue increase 1% y/y to $797 million. It recorded an adjusted EBITDA margin of 4.8%, which was 10 bps higher y/y.
Consolidated adjusted EBITDA increased 37% y/y to $288 million in the quarter.
Shares of XPO were up 8.3% in premarket trading on Friday.
The company will host a call to discuss first-quarter results with analysts on Friday at 8:30 a.m. EDT.
Click for full report – “XPO sees Q1 strength carrying forward”
Fred Sink
Why the adjusted OR?