In a quarter where most trucking companies have underperformed, XPO (XPO -1.62%) beat top- and bottom-line expectations. Investors are hitting the gas pedal, sending shares of XPO up 9% as of 10:00 a.m. ET.

Rolling along while others hit speedbumps

XPO is a one-time transportation conglomerate that, following a spin-off of its brokerage and warehouse management businesses, today operates primarily as a less-than-truckload (LTL) trucker. LTL is a complicated segment of the business because it involves coordinating shipments from multiple customers on one truck, but when done well, it can be a lucrative operation.

The evidence suggests XPO is doing it well. The company earned $0.81 per share in the first quarter on $2.02 billion, surpassing Wall Street's $0.67 per share on $2.01 billion in sales estimate. In an environment where overall shipping is down due to macroeconomic concerns, XPO managed to grow revenue by 6% year over year, and tonnage grew by 2.6%.

The company has made a push to become more efficient. Operating ratio, a measure of profitability, improved by 400 basis points year over year, and damage claims fell to a new company low.

"In North American LTL, every key operating and financial metric reflected the team's strong execution of our LTL 2.0 plan," CEO Mario Harik said in a statement. "While we've made significant progress in executing our LTL 2.0 plan, we're still in the early stages of unlocking our full potential."

Is XPO stock a buy?

The results are eye-catching, especially following far weaker reports from industry rivals, including Old Dominion Freight Lines and ArcBest. XPO's plan to overhaul its operations and improve quality and efficiency appears to be helping it gain share and boost profitability at a time when new business is tough to bring in.

Even after its gains, XPO still trades at a multiple to sales significantly below that of Old Dominion. For years, Old Dominion's premium valuation has been justified due to its superior operating results. However, with companies like XPO showing signs of closing that gap, investors interested in trucking should take a hard look at buying into upstarts like XPO.