Freight delivery company XPO (NYSE: XPO) will be announcing earnings results this Thursday morning. Here’s what investors should know.
XPO beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.11 billion, up 2.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ European Transportation revenue estimates and a solid 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, analysts are expecting XPO’s revenue to grow 1.8% year on year to $1.95 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. XPO has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at XPO’s peers in the ground transportation segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Heartland Express’s revenues decreased 26.1% year on year, missing analysts’ expectations by 6%, and Landstar reported a revenue decline of 2.9%, falling short of estimates by 1.4%. Landstar traded down 2.3% following the results.
Read our full analysis of Heartland Express’s results here and Landstar’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 8.5% on average over the last month. XPO is up 19.9% during the same time and is heading into earnings with an average analyst price target of $156.08 (compared to the current share price of $169.90).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
