XPO - Why XPO Stock Is Cruising Today
2024-05-03 11:14:24 ET
In a quarter where most trucking companies have underperformed, XPO (NYSE: XPO) beat top- and bottom-line expectations. Investors are hitting the gas pedal, sending shares of XPO up 9% as of 10:00 a.m. ET.
XPO is a one-time transportation conglomerate that, following a spin-off of its brokerage and warehouse management businesses, today operates primarily as a less-than-truckload (LTL) trucker. LTL is a complicated segment of the business because it involves coordinating shipments from multiple customers on one truck, but when done well, it can be a lucrative operation.
The evidence suggests XPO is doing it well. The company earned $0.81 per share in the first quarter on $2.02 billion, surpassing Wall Street's $0.67 per share on $2.01 billion in sales estimate. In an environment where overall shipping is down due to macroeconomic concerns, XPO managed to grow revenue by 6% year over year, and tonnage grew by 2.6%.
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Why XPO Stock Is Cruising Today