XPO (XPO) Beats Q3 Earnings and Revenue Estimates

Core Insights - XPO reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing an increase from $1.02 per share a year ago, resulting in an earnings surprise of +5.94% [1] - The company generated revenues of $2.11 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.12% and up from $2.05 billion year-over-year [2] - XPO has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The sustainability of XPO's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $1.94 billion, and for the current fiscal year, it is $3.64 on revenues of $8.04 billion [7] Industry Context - The Transportation - Truck industry, to which XPO belongs, is currently ranked in the bottom 3% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact XPO's performance [5] Stock Performance - XPO shares have declined approximately 4.9% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The current unfavorable estimate revisions trend has resulted in a Zacks Rank 4 (Sell) for XPO, suggesting expected underperformance in the near future [6]