"XPO ( NYSE: XPO) delivered a beat on both earnings and revenue this morning, but the stock's strong 11.6% rally tells you something important: investors are watching execution and they like what they see. Here's What Happened XPO reported Q3 adjusted diluted EPS of $1.07, beating the $1.02 consensus by $0.05. Revenue came in at $2.11 billion, topping the $2.07 billion estimate. The stock opened at $124.02 and is trading up 11.6% by mid-morning, a strong move that reflects investor conviction in XPO's operational momentum despite a cautious freight backdrop."
"The North American LTL segment generated $1.26 billion in revenue, propelled by yield improvements and AI-driven productivity gains. Management emphasized that record service quality and margin expansion are taking hold even as the freight market remains soft. Adjusted EBITDA rose 2.7% year-over-year to $342 million, a solid result when you consider the headwinds."
"Operating income fell 6.82% year-over-year to $164 million. Net income dropped 13.68% to $82 million. A $35 million charge for environmental and product liability claims weighed on results, but even adjusting for that, the bottom-line pressure reflects the freight cycle's reality. Cash and equivalents declined 11.38% to $335 million, a decline worth monitoring as the company manages capital allocation. The company repurchased $50 million in stock and repaid $50 million on its term loan during the quarter, showing balanced capital discipline."
Adjusted diluted EPS was $1.07, beating consensus by $0.05. Revenue was $2.11 billion, above estimates and up 2.83% year-over-year. North American LTL generated $1.26 billion driven by yield improvements and AI-driven productivity, supporting record service quality and margin expansion. Adjusted EBITDA rose 2.7% year-over-year to $342 million. Operating income fell 6.82% to $164 million and net income dropped 13.68% to $82 million. A $35 million charge for environmental and product liability claims reduced results. Cash and equivalents declined 11.38% to $335 million. The company repurchased $50 million and repaid $50 million of its term loan. The stock rallied 11.6% on execution momentum.
Read at 24/7 Wall St.
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