Earnings Watch: Better Profits for XPO, Forward Air, Echo Global Logistics
Most trucking companies so far this earnings reporting season are reporting big gains in profits in both the fourth quarter of last year as well as for all of 2017. This is due in large part to tax reform legislation, and numbers released Wednesday were no exception.
XPO Logistics Records $312 Million Profit
XPO Logistics Inc. reported revenue of $4.19 billion for the fourth quarter of 2017 compared with $3.68 billion for the same period in 2016. Revenue increased year-over-year by $555.2 million, excluding fourth quarter 2016 revenue of $37.9 million from the North American truckload unit divested in October 2016.
Net income was $188.5 million for the quarter, $1.42 per share, compared with net income of $27.3 million, or 22 cents per share, a year earlier.
The company said it had $169.9 million in net tax benefit related to tax reform and other tax-related adjustments.
For the full year 2017, the company reported total revenue of $15.38 billion, compared with $14.62 billion for 2016. Revenue increased year-over-year by $1.19 billion, excluding 2016 revenue of $431.9 million from the North American truckload unit divested in October 2016.
Net income was $312.4 million, or $2.45 per share, compared with $63.1 million, or 53 cents per share for 2016.
“I’m pleased that we beat fourth quarter expectations for revenue, earnings per share, adjusted EBITDA, cash flow from operations and free cash flow,” said Bradley Jacobs, chairman and CEO. “We generated outsized organic revenue growth of 10.4%, led by gains in freight brokerage, last mile and contract logistics. A strong holiday peak played directly to our strengths in e-commerce.
He said in XPO’s transportation segment, freight broker revenue increased by 33% while also increasing net revenue margin, both during the fourth quarter.
“Our North American less-than-truckload unit increased operating …Read the rest of this story
