XPO Stock Rises After Q4 Profit Beat: Retail’s Elated
Synopsis
On an adjusted basis, the goods transport firm reported earnings from continuing operations of $0.89 per share for the fourth quarter, compared with the average analysts’ estimate of $0.63 per share.
XPO shares rose 7.8% on Thursday after the company’s fourth-quarter earnings topped Wall Street estimates.
On an adjusted basis, the goods transport firm reported earnings from continuing operations of $0.89 per share for the fourth quarter, compared with the average analysts’ estimate of $0.63 per share, according to FinChat data.
Its quarter revenue declined 1% to $1.92 billion compared to the year-ago quarter. Wall Street estimated fourth-quarter revenue to be $1.92 billion.
The company attributed the decline to lower fuel surcharge revenue in the North American less-than-truckload (LTL) segment.
The LTL segment is a shipping service for comparatively smaller freight loads and helps minimize shipment costs.
The company’s North American LTL segment shipments per day declined 4.4% compared to last year, and the average load factor fell 1.9%.
However, its revenue per shipment rose 1%, including fuel surcharges.
Operating income rose to $179 million in the fourth quarter, compared with $149 million in the same period in 2023.
“We’ve entered 2025 with strong momentum, following landmark network investments that strengthen our competitive position in a freight market recovery and for the long-term,” CEO Mario Harik said.
The company said its European transportation segment revenue increased to $765 million for the fourth quarter, compared with $753 million in the year-ago quarter, primarily due to pricing growth.
The company expects gross capex expenditure to be between $600 million and $700 million.
Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (85/100) territory from ‘bearish’(38/100) a day ago, while retail chatter rose to ‘high.’
Over the past year, XPO stock has gained 50.62%.
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