- XPO's fourth quarter EBITDA exceeded expectations, even with a notable drop in operating margin for the North American trucking operations.
- Management has a multipoint improvement plan underway for the trucking business that includes increased service quality, increased capacity, and improved efficiency.
- XPO's truck brokerage continues to gain share, helped by a tight trucking market and past investments in customer-friendly IT.
- XPO's trucking turnaround may take longer than expected, particularly in light of multiyear underperformance relative to several peers.
- The market is not giving much credit to XPO now, but attractive valuation is tempered by the need for improved execution and weaker Street sentiment towards transports.
For further details see:
XPO Logistics' Self-Help Efforts Running Into Cooler Sentiment