XPO (NYSE: XPO) reported fourth-quarter adjusted earnings per share of 88 cents ahead of the market open on Thursday. That was 12 cents higher than the consensus estimate but 1 cent below the year-ago result.
The consensus estimate moved down (from 85 cents) after XPO’s intraquarter update, which some analysts construed as worse-than-expected. (The adjusted EPS result excluded gains on real estate sales in addition to transaction and restructuring costs.)
Consolidated revenue of $2.01 billion was 4.7% higher year over year and ahead of a $1.95 billion consensus estimate.
“By pairing world-class service with our proprietary technology, we’re building durable earnings power unique to our business,” said Mario Harik, chairman and CEO, in a news release. “We’re continuing to execute for market-leading margin expansion in the current environment, while positioning for outsized share and margin gains in a recovery.”
Table: XPO’s key performance indicators
The less-than-truckload unit reported a 0.8% y/y revenue increase to $1.17 billion (in line with management’s guidance of flat to slightly higher). Tonnage was down 4.5% y/y (in line with guidance calling for a result similar to the third quarter’s exit rate of down 4.7%). Revenue per hundredweight (yield) was up 5.2% y/y excluding fuel surcharges (in line with guidance for close to the third quarter’s 5.9% increase).
The fourth-quarter yield metric benefitted from a 3% decline in weight per shipment and a 0.9% increase in length of haul.
The LTL unit reported an 84.4% adjusted operating ratio, 180 basis points better y/y, but 170 bps worse than the third quarter. The result was better than the historical sequential deterioration of 200 to 250 bps, and near management’s 84% implied guide.
XPO’s European transportation segment reported a 10.6% y/y increase in revenue to $846 million. Adjusted EBITDA of $32 million was up 18.5% y/y.
Shares of XPO were down 1.4% in pre-market trading on Thursday.
The company will host a call to discuss fourth-quarter results on Thursday at 8:30 a.m. EST.
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