What happened

Shares of XPO Logistics (NYSE:XPO) have jumped today, up by 11% as of 2:30 p.m. EDT, after the company reported mixed second-quarter results. Revenue came in below expectations, but the logistics specialist beat bottom-line forecasts.

So what

Revenue in the second quarter was $4.24 billion, missing the consensus estimate of $4.37 billion. On the bright side, adjusted net income was $132 million, or $1.28 per share, topping the $1.04 per share in adjusted profits that investors were expecting. Adjusted EBITDA, which excludes certain one-time items like restructuring and severance costs, was $455 million.

XPO Logistics truck in front of an XPO Logistics building

Image source: XPO Logistics.

"We beat on EPS, adjusted EBITDA and free cash flow in the second quarter, offsetting a softer operating environment with cost discipline and margin gains," CEO Bradley Jacobs said in a statement. "In North American freight brokerage, we improved net revenue margin to 20.4%, up 360 basis points from last year's second quarter."

Now what

XPO also tweaked its 2019 guidance in several ways. The year-over-year change in revenue is now expected to be negative 1% to positive 1%, compared to a previous forecast of 3% to 5% growth. Organic revenue growth should be 2.5% to 4.5%, down from the prior outlook of 5.5% to 7.5% growth. Fluor attributed the revisions to "expected impact of lower truckload rates in freight brokerage and unfavorable foreign currency exchange."

On the bright side, XPO expects free cash flow to be in the range of $575 million to $675 million, up from its prior guidance of $525 million to $625 million. The company also raised the low end of its adjusted EBITDA guidance by $25 million, Jacobs noted.