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XPO Logistics’ Q4 Results Exceed Expectations; Shares Rise 3.4%

Freight transportation company XPO Logistics, Inc. (NYSE: XPO) has reported upbeat results for the fourth quarter ended December 31, 2021. A strong growth witnessed in revenues drove the overall results of the company.

Following the results, shares of the company rose 3.4% to close at $66.50 in Tuesday’s extended trading session.

Revenue & Earnings

XPO Logistics reported quarterly revenues of $3.36 billion, up 14.4% year-over-year. Further, the figure surpassed the consensus estimate of $3.27 billion. A 17.1% year-over-year growth witnessed in revenues from Brokerage and Other Services Segment to $2.4 billion contributed to the overall revenue growth of the company.

The company’s quarterly earnings stood at $1.34 per share, up 152.8% from the same quarter last year. The figure also topped the consensus estimate of $0.99 per share.

Other Operating Metrics

The company’s operating ratio improved to 86.4% from 84.9% a year ago. However, adjusted EBITDA margin witnessed a year-over-year decline of 120 bps to 20.9%.

For the fourth quarter, the company generated $98 million of cash flow from operating activities, while free cash flow was $57 million for the same period.

Outlook

For full-year 2022, the company forecasts adjusted EBITDA of $1.36 billion to $1.40 billion, while EPS for the same period is likely to be in the range of $5 to $5.45.

Stock Rating

Consensus among analysts is a Strong Buy based on 15 Buys and 3 Holds. The average XPO Logistics price target of $98.77 implies 53.5% upside potential from current levels. Shares have declined 9.1% over the past year.

Negative Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on XPO. Further, 5.3% of portfolios tracked by TipRanks decreased their exposure to XPO stock over the past 30 days.

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