Transportation & Logistics Giant XPO Stock Hits 52-Week High - Sign Of A Healthy Economy?

XPO Inc XPO reported fourth-quarter fiscal 2023 revenue growth of 6% year-over-year to $1.94 billion, beating the consensus of $1.92 billion.

The increase in revenue was due to higher yield, excluding fuel, and an increase in tonnage per day in the North American LTL segment.

Adjusted EPS was $0.77, down from $0.98 a year ago, beating the consensus of $0.62.

Operating income was $119 million, compared to $4 million a year ago. Adjusted EBITDA increased 0.8% Y/Y to $264 million in the quarter, and the margin contracted to 13.6% from 14.3% last year in the same quarter.

Also Read: XPO’s Winning Strategy: Analyst Highlights Service Improvements and Aggressive Acquisitions Fueling Growth

North American Less-Than-Truckload revenue was $1.19 billion (+8.6% Y/Y). Adjusted operating ratio was 86.5%, up 380 bps YoY. The segment’s shipments per day increased 5.7 % Y/Y, tonnage per day increased 2% Y/Y, and yield, excluding fuel, rose 10.3%.

European Transportation generated revenue of $753 million (+2% Y/Y), and the Adjusted EBITDA margin was 4.7%, down by 50 bps. Adjusted operating income declined 58.3% Y/Y to $5 million.

The company generated $251 million of cash flow from operating activities in the quarter and ended the quarter with $412 million of cash and cash equivalents on hand. The company’s damage claims ratio was 0.3% for the quarter.

2024 planning assumption: XPO expects gross capex of $700 million to $800 million, Interest expense of $240 million to $260 million, and an Adjusted effective tax rate of 23% to 25%.

Price Action: XPO shares are trading higher by 17.46% at $115.17 on the last check Wednesday.

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