Freight delivery company XPO (NYSE: XPO) will be reporting results this Thursday before market hours. Here’s what you need to know.
XPO beat analysts’ revenue expectations last quarter, reporting revenues of $2.36 billion, up 13.2% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is XPO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting XPO’s revenue to grow 12.8% year on year, improving from the 2.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. XPO rarely misses Wall Street’s revenue estimates.
Looking at XPO’s peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ryder delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 1.2%, and Knight-Swift Transportation reported revenues up 14.2%, topping estimates by 1.4%. Ryder traded up 12.7% following the results while Knight-Swift Transportation was down 1.1%.
Read our full analysis of Ryder’s results here and Knight-Swift Transportation’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the ground transportation stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. XPO is up 6.4% during the same time and is heading into earnings with an average analyst price target of $225.04 (compared to the current share price of $187.99).
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