XPO Logistics (XPO 82.27, -7.11, -7.95%) held a pre-market loss of
4.3% after reporting weaker than expected quarterly results and lowering its
guidance for the fiscal year.
The provider of logistics and transportation services reported below-consensus third quarter earnings of $0.89 per share on revenue, which jumped 11.5% year/year to $4.34 bln but was shy of expectations.
In addition to missing expectations, the company announced that it has lowered its target for full-year adjusted EBITDA to $1.585 bln from expectations of at least $1.6 bln. The carrier reaffirmed its expectations for cumulative free cash flow of about $1 bln. The decline in adjusted EBITDA guidance resulted from a third-quarter bankruptcy of one of the company's customers.
Operating income grew 18.3% year/year to $209.0 mln while operating margin improved to 4.8% from 4.5% one year ago.
The company saw net revenue growth in most of its segments. Net revenue in North America totaled $795.9 mln, representing year/year growth of 10.9%. Freight brokerage revenue increased 46.2% to $138.0 mln; Last Mile revenue increased 7.0% to $76.5 mln; and Managed Transport revenue decreased 5.2% to $23.8 mln.
Less-than-truckload revenue grew 6.6% to $392.7 mln. Shipments per day declined 5.4% while the average weight per shipment increased 4.2%. Gross revenue per shipment increased to $300.76 from $275.93.
Europe revenue increased 3.7% to $150.6 mln while Global Forwarding revenue rose 10.9% to $14.3 mln.
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