September 25, 2023

XPO logistics

Source: XPO Logistics

XPO Logistics announced better than expected quarterly results and sales on Monday afternoon due to the strong truck and logistics business.

XPO shares hit an all-time high for the day ahead of the quarterly earnings report released after the closing bell on Wall Street. The stock was slightly lower in after-hours trading.

The company reported adjusted quarterly earnings of $ 1.46 per share, more than double the prior-year period, with total revenue growing more than 23% to $ 4.77 billion.

This is how XPO Logistics developed compared to the analyst estimates prepared by Refinitiv:

  • Merits: $ 1.46 adjusted versus $ 0.97 expected
  • Revenue: Expected $ 4.77 billion versus $ 4.33 billion

Adjusted earnings before interest, taxes, depreciation and amortization, known as EBITDA, increased 33% to $ 443 million in the first quarter.

XPO increased its adjusted EBITDA forecast for the full year to $ 1.825 billion to $ 1.875 billion from the previous forecast of between $ 1.725 billion and $ 1.8 billion.

The company’s North American truck brokerage sales increased 83% year over year to $ 589 million in the first quarter.

“In logistics, our record first quarter sales of $ 1.82 billion were driven by the three major logistics tailwinds: e-commerce, outsourcing and warehouse automation,” said CEO Brad Jacobs in a press release announcing the results were.

XPO shares doubled in the past year as the pandemic sparked a boom in e-commerce and demand for warehousing, logistics, and reverse logistics. The share has risen by around 19% since the beginning of the year.

“We gained a tremendous amount of logistics business in the first four months of this year, including a $ 1.8 billion contract with a long-standing customer that extends and expands our relationship through 2032. This is the largest contract in our company’s history “said Jacobs.

XPO will spin off its highly profitable logistics segment into a new company called GXO Logistics, which is expected to close in the second half of 2021. Current logistics customers Nike, Coca-Cola, Intel and others are expected to stay with the spin-off company. Malcolm Wilson, the current European CEO of XPO, will take over the helm at GXO.

Apple also announced last week that it would be hiring XPO to operate a new $ 100 million logistics facility in Indiana.

– Program Note: Malcolm Wilson will be interviewed by CNBC’s Jim Cramer on Mad Money later Monday.