GREENWICH, Conn. - XPO Logistics , Inc. (NYSE: NYSE:XPO), a leading provider of freight transportation services, reported a robust first quarter for 2024, with significant increases in both earnings and revenue, sending the company's shares up 8% in premarket trading.
The company's adjusted diluted earnings from continuing operations per share (EPS) reached $0.81, a substantial improvement from the $0.56 reported in the first quarter of 2023, and surpassing the analyst consensus of $0.67. Total revenue for the quarter was $2.02 billion, a 5.8% increase from the $1.91 billion reported in the same period last year, and slightly above the consensus estimate of $2.01 billion.
The company's North American Less-Than-Truckload (LTL) segment was a standout, with revenue climbing to $1.22 billion, a 9.0% increase compared to the first quarter of the previous year. This growth was primarily driven by a 9.8% rise in yield, excluding fuel surcharges, and a 2.6% increase in tonnage per day. Adjusted operating income for the segment soared by 49.6%, and the adjusted operating ratio improved by 390 basis points to 85.7%, reflecting strong execution of the company's LTL 2.0 plan.
Mario Harik, CEO of XPO, highlighted the company's performance, stating, "Our strong first quarter financial results exceeded expectations, giving us a solid start to 2024. Companywide, year-over-year, we grew revenue by 6%, adjusted EBITDA by 37% and adjusted diluted EPS by 45%." Harik attributed the success to the team's execution of the LTL 2.0 plan and noted the company's commitment to becoming the leading LTL service provider.
The European Transportation segment also reported growth, with revenue inching up to $797 million from $787 million in the previous year. However, the segment experienced an operating loss of $4 million, slightly higher than the $3 million loss in the first quarter of 2023.
Overall, XPO's operating income more than doubled to $138 million, and net income from continuing operations jumped to $67 million, a significant increase from the $17 million reported last year. The company ended the quarter with $229 million in cash and cash equivalents, after accounting for $299 million of net capital expenditures.
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