XPO Inc Shares Gain After Q2 Results, Revenue Misses Estimates

XPO Inc XPO reported a second-quarter FY23 revenue decline of 6.4% year-over-year to $1.92 billion, missing the consensus of $1.93 billion.   

Adjusted EPS was $0.71, down from $1.14 in 2Q22, beating the consensus of $0.61.

Q2 Operating income was $107 million, compared with $171 million in 2Q22, and the margin contracted by 277 bps to 5.6%.

North American Less-Than-Truckload revenue was $1.14 billion (-8.4% Y/Y). Shipments per day increased 1.9% Y/Y, tonnage per day decreased 2.8% Y/Y, and yield, excluding fuel, rose 1.4%.

European Transportation generated revenue of $781 million, compared to $807 million in 2Q22.

Also Read: XPO Adds Capacity In Georgia, Expanding In Metro Atlanta

Adjusted EBITDA decreased to $244 million in the quarter, compared with $289 million for 2Q22, and the margin contracted to 12.7% from 14.1%.

The company generated $131 million of cash flow from operating activities, and Free cash flow was $5 million.

“Looking forward, we’ll continue to deliver financial and operational excellence through the disciplined execution of our LTL 2.0 plan. This includes ongoing investments in network capacity of tractors, trailers and doors. We remain confident in achieving our long-term targets,” CEO Mario Harik stated.

Price Action: XPO shares are trading higher by 6.75% at $72.94 at last check Friday.

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