The Future Is Here? XPO Logistics Inc. (XPO)

XPO Logistics Inc. (NYSE: XPO) released its second-quarter earnings report, which alleviated worries regarding the company’s profitability growth. On August 9, XPO shares were valued at $55.08.

XPO Logistics’ sales increased marginally to $3.23 billion in the most recent quarter. Earnings per share climbed to $1.22 from $1 the previous year. However, GXO Logistics, the company’s logistics outsourcing, and supply chain branch was recently split out as a distinct entity.

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With a reduced fleet, the company was left with only the backbone of the logistics sector in North America. However, the remainder of XPO Logistics outperformed expectations. Its adjusted operating margin was 19.6%, which was significantly higher than the previous year’s performance when XPO Logistics was short on personnel and equipment.

Brokerage service volume grew by 16%. The XPO Connect service, which connects shippers and carriers, is becoming increasingly popular. In the second quarter of 2022, its weekly user count increased by 47%.

XPO Logistics’ management expects the favorable dynamics to continue in the current year and has raised its full-year outlook. We now anticipate adjusted EBITDA of $1.4-$1.43 billion and profits of $5.55-$5.9 per share for the entire year.

According to Brad Jacobs, CEO of XPO Logistics, his company’s shares are cheap, but it should be highlighted that the logistics industry is one of the first to be impacted by the deteriorating macroeconomic environment and rising fuel costs. Although XPO Logistics’ truckload has decreased, the business’s profitability has remained strong, and the company is still able to function effectively in the face of rising inflation.

The 5-day range for XPO stock was $54.80 to $61.66, with a total performance of -6.71% during that time period. Meanwhile, during the last month, this stock has moved in a range of $45.09 to $61.66, representing a +11.07% change. This stock’s price has risen by +8.28% in the last three months, fluctuating between $45.09 and $61.66.

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