Please ensure Javascript is enabled for purposes of website accessibility

XPO Logistics, Inc. Slides 17% After the Bottom Line Disappoints

By Daniel Miller - Feb 25, 2016 at 12:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

XPO Logistics has some work to do in incorporating its numerous acquisitions, and its fourth quarter reflected that in a widening loss.


Image source: XPO Logistics.

What: Shares of XPO Logistics (XPO -0.02%), a company with its own trucking fleet that also arranges freight transportation for customers, are sliding more than 17% during Thursday after the company released its fourth-quarter results that disappointed on the bottom line.

So what: During the fourth quarter, XPO recorded an adjusted net loss of just over $23 million, or $0.21 per share. That excluded special items but it fell far short of the consensus estimates per-share loss of $0.06, according to FactSet.

For the full-year 2015, XPO reported an adjusted net loss of just under $40 million, or $0.40 per share, which was better than the full-year consensus net loss of $0.51 per share. However, investors including deal costs witnessed the company's net loss widen from $9.9 million during the fourth quarter of 2014 to roughly $63 million during the recent fourth quarter -- but with the amount of acquisitions XPO has logged, it's a difficult comparison. On the bright side, revenue from businesses the company has owned for more than a year grew by 8.4% during the fourth quarter, which suggests top-line growth will be strong once all the recent acquisitions are folded in properly.

"Any company that has done 16 acquisitions in four years, their... earnings are going to be significantly affected," CEO Bradley Jacobs said, according to The Wall Street Journal. "We have positioned ourselves in a way that's growing faster than markets. We're not just growing with GDP we're not just growing with the industry."

Now what: The past 12 months for XPO have been a rough ride, with shares down nearly 50% over that time. However, the company should be able to rebound in the years ahead as it has a lot of potential to optimize its operations and consolidate redundant jobs from its number of acquisitions. Those incremental improvements and cost-cutting should lead to improvements and more consistency in its earnings going forward. If not, expect another painful couple of years for XPO's stock price. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

XPO Logistics, Inc. Stock Quote
XPO Logistics, Inc.
XPO
$48.15 (-0.02%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.