Why XPO Stock Is Accelerating Today
Trucking company XPO (NYSE: XPO) delivered for investors in the most recent quarter, announcing results that easily beat expectations. The stock responded by zooming into the fast lane, gaining more than 12% on Monday morning.
XPO is one of the nation's largest providers of less-than-truckload transport, the complex business of filling trucks with packages from multiple customers. The company sputtered last year as it worked through some cost issues, but it appears to now be on the right path.
XPO earned $0.88 per share in the third quarter on revenue of $1.98 billion, surpassing Wall Street's expectations for $0.63 per share in earnings on sales of $1.93 billion. The company's operating ratio, a measure of profitability, improved to 86.2% in the quarter thanks to gains in volumes, pricing, and labor productivity. And XPO's damage claims ratio was a company-best 0.4%, an improvement over 1.2% two years ago.
Source Fool.com
