XPO (XPO) Beats Q4 Earnings and Revenue Estimates

Core Viewpoint - XPO reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.77 per share a year ago, representing an earnings surprise of 43.55% [1][2] Financial Performance - The company achieved revenues of $1.92 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.76%, although this is a slight decrease from $1.94 billion in the same quarter last year [2] - Over the last four quarters, XPO has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - XPO shares have increased approximately 3.9% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $1.97 billion, and for the current fiscal year, it is $4.16 on revenues of $8.26 billion [7] - The estimate revisions trend for XPO is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Transportation - Truck industry, to which XPO belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact XPO's stock performance [5]