XPO, Inc.’s (XPO) shares are experiencing a decline in premarket trading following the company’s announcement of a decrease in August LTL (Less-than-Truckload) tonnage per day. The company attributed this dip to a 4.5% decline in daily shipments and a slight drop of 0.1% in weight per shipment compared to August 2023.
Despite the dip, XPO CEO Mario Harik expressed confidence in the company’s outlook. He highlighted the effectiveness of XPO’s cost management strategies in a challenging demand environment, supporting their anticipated margin expansion. Harik also emphasized the favorable pricing backdrop within the industry, combined with XPO’s ongoing initiatives to achieve robust above-market yield growth. These initiatives, coupled with continuous service enhancements and network investments, are expected to further boost XPO’s results as industry demand recovers.
In its recent second-quarter report, XPO showcased a positive performance with revenue exceeding $2.097 billion, a year-over-year increase of 8.5%. This exceeded analysts’ expectations of $2.072 billion. The company also reported adjusted earnings per share (EPS) of $1.12, outperforming the consensus estimate of $1.01. This revenue surge was attributed to higher yield and tonnage per day within the North American LTL segment.
Investors seeking exposure to XPO can consider the ProShares Supply Chain Logistics ETF (SUPL) and the Alger Weatherbie Enduring Growth ETF (AWEG).
XPO shares are currently down 8.42% at $104.06 premarket.
