Earnings Watch: XPO Sets Record High; C.H. Robinson, Hub Group Post Declines
Trucking and logistics provider XPO Logistics Inc. on Wednesday reported income and revenue hit a record-high of any quarter during the third quarter of 2017.
Net income was $57.5 million for the quarter, or 44 cents per share, compared with net income of $13.8 million, or 11 cents per share, for the same period in 2016.
While this was below a consensus estimate from a survey of analysts, the more than 300% surge in earnings reportedly marked the eighth straight quarter in which the Connecticut-based company beat year-earlier profits.
Revenue was $3.89 billion for the quarter, compared with $3.71 billion for the same period in 2016. Revenue increased year-over-year by $305.1 million, excluding third quarter 2016 revenue of $131.8 million from the North American truckload unit XPO sold off in October 2016.
“We benefited from positive market dynamics, including e-commerce demand for contract logistics and last mile, growth in intermodal, and a brokerage market that is trending in our favor,” said Bradley Jacobs, chairman and CEO. “Our diversification is yielding results.”
The company’s transportation segment generated revenue of $2.47 billion in the quarter compared with $2.41 billion for the same period in 2016, which included $131.8 million of revenue from the North American truckload unit it previously owned.
Segment revenue was led by increases in North American freight brokerage, less-than-truckload and last mile, and European less-than-truckload, according to XPO.
Operating income for the transportation segment increased to $145.2 million in the quarter, compared with $125.4 million for the same period in 2016.
XPO’s logistics segment generated revenue of $1.46 billion for the quarter, compared with $1.35 billion for the same period in 2016.
It said the increase in logistics revenue was led by strong demand for contract logistics both in Europe and North America, partially offset by a decline in managed transportation revenue in North America. In Europe, contract …Read the rest of this story
