Freight delivery company XPO (NYSE: XPO) will be announcing earnings results this Thursday before market open. Here’s what to look for.
XPO beat analysts’ revenue expectations last quarter, reporting revenues of $2.01 billion, up 4.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue 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 4.2% year on year, a reversal from the 3.2% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. XPO rarely misses Wall Street’s revenue estimates.
Looking at XPO’s peers in the ground transportation segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Heartland Express’s revenues decreased 19.7% year on year, beating analysts’ expectations by 2.6%, and Covenant Logistics reported revenues up 14%, topping estimates by 6.9%. Heartland Express traded up 12.5% following the results while Covenant Logistics was also up 9.1%.
Read our full analysis of Heartland Express’s results here and Covenant Logistics’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 14.1% on average over the last month. XPO is up 20% during the same time and is heading into earnings with an average analyst price target of $207.78 (compared to the current share price of $223.70).
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