Less-than-truckload carrier XPO rode higher volumes and better pricing to a third-quarter beat on Monday.
XPO (NYSE: XPO) reported adjusted earnings per share of 88 cents before the market opened. The result was 25 cents better than the consensus estimate but 7 cents lower year over year (y/y). The adjusted number excluded transaction and restructuring costs.
“Our third quarter results exceeded expectations, with solid growth in revenue and profitability, and strong forward momentum,” said CEO Mario Harik.
Revenue in the company’s LTL unit increased 2% y/y to $1.23 billion. Tonnage per day was 3% higher and revenue per hundredweight, or yield, increased 6% excluding fuel surcharges.
Compared to the second quarter, XPO’s shipments per day increased 5%, in part due to Yellow’s exit. Yield (excluding fuel surcharges) was also up 6% from the second quarter. The segment recorded an 86.2% adjusted operating ratio, which was 140 basis points better sequentially.
The OR normally deteriorates by 230 bps from the second to third quarter. The company outperformed the mark by 370 bps.
“It’s exciting to take large steps forward across the business as we execute our plan. We’re making excellent progress, and I’m confident that we’re still in the early innings of realizing XPO’s full potential,” Harik continued.
XPO’s European transportation segment recorded a 2% y/y revenue increase to $752 million and a 5.8% adjusted EBITDA margin, which was down 10 bps y/y.
XPO will host a call at 8:30 a.m. EDT Monday to discuss third-quarter results.
- ArcBest prudent in approach to new freight opportunities
- Auction houses to liquidate Yellow’s tractors, trailers
- Heartland books Q3 loss, cuts unprofitable customers and lanes