XPO Logistics Beat Analyst Estimates
How Did XPO Logistics Perform in 1Q16?
XPO’s 1Q16 results
XPO Logistics (XPO) released 1Q16 earnings on May 3, 2016, after the markets closed. The company held a conference call with investors and analysts on May 4, 2016, to discuss 1Q16 results. XPO’s adjusted loss per share was $0.08 against Wall Street estimates of $0.19. The company beat the analysts’ estimates by 57.8%.
The US trucking industry was in relatively better shape compared to railroads (NSC) in 2015. This was mainly due to good capacity, better contract rates, and a constant rise in tonnage. Plus, the lower fuel prices added to the competitiveness of the trucking industry as a whole. According to KC SmartPort, the trucking industry may see a 4%–9% increase in pricing by the end of 2016.
The overall transportation stocks started 2016 on a sour note. However, from February onwards, investors witnessed a surge in the transportation stocks. And trucking was a no exception. As of May 3, XPO gained 10% year-to-date. The company’s peers witnessed the following returns:
ArcBest (ARCB) delivered a return of -17.5%.
Old Dominion Freight Line (ODFL) delivered a return of 10.3%.
SAIA (SAIA) delivered a return of 26.3%.
YRC Worldwide (YRCW) delivered a return of -38.7%.
Investors can invest in the Guggenheim S&P 500 Equal Weight ETF (RSP), which is a growth ETF. Prominent companies in diverse industries are included in the portfolio holdings of RSP.
What we’ll cover in this series
Investors should note that XPO acquired UX Specialized Logistics, Bridge Terminal Transport Services, Norbert Dentressangle SA, and Con-Way in 2015. The most important acquisition was the $2.3 billion purchase of Con-Way in October. XPO consolidated Con-Way’s $896.2 million in revenues and $0.5 million in operating income in the fourth quarter of 2015. Con-Way is the second largest LTL (less-than-truckload) operator in North America.
Continue reading to find out more about XPO’s overall revenues, its segmental performance, and analysts’ perspective on the company’s near-term financial performance.
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