The 10-second takeaway
For the quarter ended June 30 (Q2), XPO Logistics whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share expanded.
Margins contracted across the board.
XPO Logistics reported revenue of $137.1 million. The nine analysts polled by S&P Capital IQ predicted revenue of $156.2 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $54.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$1.00. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.61 per share. GAAP EPS were -$1.00 for Q2 versus -$0.34 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 14.1%, 140 basis points worse than the prior-year quarter. Operating margin was -10.2%, 400 basis points worse than the prior-year quarter. Net margin was -12.7%, 320 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $210.1 million. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $746.4 million. The average EPS estimate is -$2.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members out of 76 rating the stock outperform, and three members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give XPO Logistics a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on XPO Logistics is outperform, with an average price target of $21.85.
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