What: Following a more than 13.5% pop on Thursday following its stronger-than-expected second-quarter results, shares of XPO Logistics Inc.(NYSE:XPO) are up another 10.3% as of 3:00 p.m. EDT Friday despite no new company-specific news.
So what: For perspective, shares of XPO Logistics are still down 18% over the past year, partly because the company worked to reestablish sustained profitability as it absorbed multiple strategic acquisitions intended to drive growth. And it did just that in its most-recent quarter, as EBITDA, adjusted net income, operating cash flow, and free cash flow all set new company records. XPO CEO Bradley Jacobs called it an "inflection point in the evolution of our business, accelerating our EBITDA and cash generation while continuing to invest in technology, our sales force and other levers of future growth."
Now what: In the absence of any new press releases or analyst actions, it would seem that today's jump is an understandable continuation of yesterday's move, as investors realize XPO Logistics might well be worth another look. As I suggested in my full earnings take yesterday, and assuming XPO can sustain this momentum going forward, I tend to agree with that realization.
Steve Symington has no position in any stocks mentioned. The Motley Fool recommends XPO Logistics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.