Freight delivery company XPO (NYSE:XPO) will be reporting earnings this Thursday before market open. Here’s what to expect.
XPO missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.95 billion, down 3.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Is XPO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting XPO’s revenue to decline 1.5% year on year to $2.05 billion, a reversal from the 8.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 9 downward revisions over the last 30 days (we track 16 analysts). XPO has missed Wall Street’s revenue estimates twice over the last two years.
Looking at XPO’s peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Werner’s revenues decreased 1% year on year, beating analysts’ expectations by 3%, and Saia reported flat revenue, topping estimates by 1.2%. Saia traded up 4% following the results.
Read our full analysis of Werner’s results here and Saia’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 5.5% on average over the last month. XPO is up 6.5% during the same time and is heading into earnings with an average analyst price target of $137.12 (compared to the current share price of $134.46).
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