Less-than-truckload carrier XPO reported third-quarter adjusted earnings per share of $1.02, 11 cents better than the consensus estimate and 14 cents higher year over year.
Consolidated revenue of $2.05 billion was a 3.7% y/y increase.
XPO’s (NYSE: XPO) LTL segment generated revenue of $1.25 billion, a 1.9% y/y increase. Tonnage per day was down 3.9% y/y, which was offset by a 3.7% increase in revenue per hundredweight, or yield (6.7% higher excluding fuel surcharges).
The unit reported an 84.2% adjusted operating ratio (operating expenses expressed as a percentage of revenue), which was 200 basis points better y/y. The adjusted OR was 100 bps worse than in the second quarter, in line with the company’s previous guidance of 100 to 150 bps of sequential OR deterioration (versus the historical trend of 200 to 250 bps of degradation).
“We’re delivering on the strong results we promised for 2024, while positioning the business to accelerate earnings growth when the freight market recovers,” said XPO CEO Mario Harik in a Wednesday news release. “The world-class service we provide creates value for our customers and will continue to be a key driver of our margin expansion.”
Adjusted EPS excluded 23 cents per share ($27 million) of transaction and restructuring costs.
XPO will host a call to discuss third-quarter results with analysts on Wednesday at 8:30 a.m. EDT.
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