Image source: XPO Logistics Inc.

What: Shares of XPO Logistics Inc. (XPO 1.41%) were up 16.1% as of 11:30 a.m. ET Thursday after the transportation and logistics services company released stronger-than-expected second-quarter 2016 results.

So what: Quarterly revenue jumped 202.9% year over year, to $3.7 billion, and translated to adjusted net income (attributable to common shareholders) of $50.4 million, or $0.42 per diluted share. That compares with an adjusted loss of $13.6 million, or $0.16 per share, in the same year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $354.9 million, up from $79.7 million in last year's second quarter. Note both adjusted income and adjusted EBITDA exclude roughly $21.5 million in one-time transaction-related and rebranding costs.

Meanwhile, XPO Logistics also generated cash flow from operations of $260.7 million, and free cash flow of $169.5 million.

XPO Logistics CEO Bradley Jacobs noted adjusted EBITDA, adjusted net income, operating cash flow, and free cash flow all set new company records during the quarter, then elaborated:

Our strong performance in the quarter was led by our North American operations for last mile and less-than-truckload, and by our European supply chain operations. While market conditions were sluggish overall, e-commerce was a major tailwind-driving margin expansion in last mile, and resulting in major contract wins in contract logistics on both sides of the Atlantic. In LTL, we increased operating income by 66% from last year's second quarter, pre-acquisition.

Now what: XPO Logistics also increased its 2016 financial targets, calling for adjusted EBITDA of at least $1.265 billion (up from $1.25 billion previously), and for free cash flow of at least $150 million (up from its old target of $100 million to $150 million). In addition, XPO reiterated its target of reaching EBITDA of roughly $1.7 billion in 2018.

All things considered, this was an excellent quarter from XPO logistics, and you'll be hard pressed to find an investor that's not happy with the company's progress. If XPO can sustain this momentum as it works to continually improve its business, I see no reason the stock won't also continue to achieve market-beating returns.