XPO Q3 revenue rises 12%, adjusted EPS beats estimates

Overview

• US LTL freight transporter Q3 revenue rose 12% yr/yr, in line with analysts' expectations

• Adjusted EPS grew 59%, exceeding expectations

• Company cites revenue growth and margin expansion as drivers of improved results

Outlook

• XPO sees further upside as freight demand recovers

• XPO expects to accelerate free cash flow and capital returns to shareholders

Result Drivers

• YIELD AND VOLUME - Co said higher yield, increased revenue per shipment and stronger volume growth from profitable share gains drove North American LTL results

• HIGHER-MARGIN FREIGHT - Co said improved revenue quality from higher-margin freight contributed to results

• COST EFFICIENCY - Co attributed improved cost efficiency to expanded use of AI across its network

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for XPO, Inc. is $235.00, about 29.3% above its October 28 closing price of $181.69

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads

• Oct 27 - Logistics firm Landstar System's Q3 revenue rises 25%, beats estimates

• Oct 27 - Werner Enterprises Q3 revenue misses estimates as higher fuel costs weigh on margins

• Oct 28 - CH Robinson Q3 revenue beats on higher truckload pricing

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)