First look: XPO Q3 earnings

Core Insights - XPO's third-quarter results exceeded expectations, driven by efficiency initiatives and higher yields in its less-than-truckload segment [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were reported at $1.07, surpassing consensus by 5 cents and matching the previous year's result [2] - Consolidated revenue increased by 3% year-over-year to $2.11 billion, exceeding the consensus estimate of $2.07 billion [3] Less-Than-Truckload Segment - Less-than-truckload revenue rose slightly year-over-year to $1.26 billion, with a 6% decline in tonnage per day offset by a 6% increase in revenue per hundredweight [4] - Tonnage decreased despite easing prior-year comparisons, but improved freight mix contributed to higher yields, with yield (excluding fuel surcharges) up 12.6% on a two-year stacked comparison [5] - The adjusted operating ratio for the LTL unit was reported at 82.7%, reflecting a 150 basis point improvement year-over-year and 20 basis points better than the second quarter [8] European Transportation Segment - The European transportation segment saw a 7% year-over-year revenue increase to $857 million, but reported an operating loss of $2 million, marking an $8 million year-over-year swing [9]