XPO Q4 revenue beats on productivity improvements

Overview

• Freight transportation firm's Q4 revenue rose 4.7%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations

Outlook

• XPO expects significant acceleration in free cash flow in coming years

• Company aims for market-leading margin expansion in current environment

• XPO positions for outsized share and margin gains in a recovery

Result Drivers

• NORTH AMERICAN LTL - Revenue increased slightly with improved adjusted operating income due to yield growth and productivity improvements

• EUROPEAN TRANSPORTATION - Revenue rose significantly, but operating losses widened due to restructuring costs

• TECHNOLOGY ADVANCEMENTS - AI developments improved network efficiency and labor productivity, reducing costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for XPO Inc is $160.00, about 10.9% below its February 4 closing price of $179.54

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nGNX2M67BF

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