XPO's (XPO -6.22%) work to streamline its operations paid off on the top and bottom lines in the fourth quarter, and investors are reacting to that news with a cheer. Shares of the trucking company opened Wednesday's trading session up 15% after the company delivered results for the period that surpassed analyst expectations.

Staying in the fast lane despite difficult conditions

2023 was a difficult year for trucking companies, as economic uncertainty reduced shipping volumes and cut into their pricing power. But XPO came into the year focused on bringing down costs and improving operations, and its efforts appear to have cushioned the company from some of the impact of the complex macroeconomic conditions.

In the fourth quarter, XPO earned $0.77 per share on revenue of $1.94 billion, beating Wall Street's consensus estimates of $0.62 per share in earnings on $1.92 billion in revenue. Its top line rose 6% year over year in a quarter that many truckers reported sales declines, and adjusted EBITDA improved by 28% from a year prior when factoring out the impact of one-time real estate gains in 2022.

"We delivered fourth quarter results that were solidly above expectations, reflecting substantial momentum in service quality, pricing and productivity," CEO Mario Harik said in a statement. "We're excited to continue to capitalize on our momentum, while laying more groundwork for the years ahead."

Is XPO a buy after its big earnings beat?

XPO is a brand that has been around for more than a decade, but this was the company's first year as a stand-alone trucker following the spinoffs of the GXO Logistics and RXO logistics and brokerages operations. Harik's initial focus has been to improve the quality of operations and bring down costs.

The real takeaway from these results for investors isn't just a single quarterly beat. Rather, it's the evidence that those initiatives appear to be working. XPO's damage claims ratio of 0.3% was a new company record, a sign of improving quality, and the company said customer satisfaction increased by more than 40%. That, in turn, could help explain how it drew in higher revenue in a challenging period.

XPO is also growing more efficient. The company's operating ratio -- a measure of how much it costs to generate each dollar of revenue -- was 86.5% in the quarter, an improvement of 380 basis points from a year ago. But despite the gains, XPO still trades at a significant valuation discount to industry-leader Old Dominion Freight Lines.

Trucking is a tough business, but when done well, it can deliver consistent returns for investors. XPO is showing every sign of evolving into a best-of-class operator. Investors interested in the sector should have this stock on their radar.