Why Shares of XPO Logistics Are Up Today
Shares of XPO Logistics (NYSE: XPO) surged 12.6% on Tuesday before falling back somewhat following the transport giant's earnings release. The results fell short of expectations, but the markets were more focused on the company's ample liquidity and ability to weather the current downturn.
After markets closed Monday, XPO reported first-quarter earnings of $0.47 per share on revenue of $3.86 billion, falling short of the consensus estimate for $0.51 per share on revenue of $3.98 billion. Adjusted EBITDA was down 2.9% year over year to $333 million, while revenue was down 6.2% from the first quarter of 2019.
The results were largely in line with what XPO had previewed last month, and investors went into the announcement fully aware that the COVID-19 pandemic was taking a toll on transportation and shipping stocks.
Source Fool.com
