XPO Beats Q1 Expectations, Sees Strength Carrying Forward
XPO Logistics (XPO) reported strong first-quarter earnings and provided a favorable outlook for the rest of the year. Adjusted earnings per share came in at 81 cents, beating estimates and increasing year-over-year.
Revenue in XPO's LTL segment increased 9% year-over-year.
Tonnage per day increased 3%, and revenue per hundredweight increased 7%.
Pricing increased an average of 8% year-over-year on contract renewals.
Accessorial revenue increased by double digits.
The LTL unit recorded an 85.7% adjusted operating ratio, outperforming expectations.
XPO is forecasting 200 to 250 bps of OR improvement sequentially in the second quarter.
Service enhancements are driving the carrier's improved yield and cost profile.
Revenue increased 1% year-over-year to $797 million.
Adjusted EBITDA margin of 4.8%, up 10 bps year-over-year.
Overall, XPO is seeing strong momentum and expects this to continue throughout the year.