XPO Logistics (NYSE:XPO) reported a 3% increase in revenue for Q3 when the impact of selling the intermodal business is backed out.
Adjusted net income from continuing operations increased to $168M vs. $109M a year ago.
CEO Brad Jacobs said the record results in the quarter demonstrate how strongly the North American businesses are positioned for growth as standalone companies. Both LTL and truck brokerage outperformed on key metrics leading into tomorrow’s spin-off, and will thrive under the leadership,” he stated.
Of note, the LTL business generated record revenue and adjusted EBITDA in Q3 withyear-over-year tonnage accelerating every month and was noted to inflect positive in September with more improvement in October. XPO said the Q3 tonnage trend outperformed typical seasonality, bucking industry trends. Meanwhile, the truck brokerage business achieved a gross profit margin of 19% Q3, with gross profit dollars up dramatically year-over-year by 31% and volume higher by 9% to easily outpace the industry.
Looking at the full year, XPO Logistics (XPO) reaffirmed guidance for the North American LTL business to generated at least $1B of full year adjusted EBITDA, including gains on sales of real estate of up to $50M in Q4 and year-over-year improvement of 50 to 100 basis points in adjusted operating ratio for the full year, including at least 120 basis points of improvement in Q4.
Shares of XPO fell 1.72% in premarket action on Monday following the mixed earnings report.