XPO Logistics secures new chief strategy officer
XPO Logistics has appointed Jared Weisfeld as chief strategy officer for XPO’s North American transportation ...
XPO Logistics yesterday confounded financial analysts’ expectations reporting third-quarter adjusted ebitda of $439m – some 24% ahead of the $350m or so Wall St and the firm itself was expecting.
In the same period last year its adjusted ebitda was $438m.
David Kerstens, equity analyst at Jefferies, said the profit growth reflected “a stronger-than-expected recovery in logistics, driven by accelerating supply chain outsourcing and growing e-commerce”.
Loadstar Premium editor Alessandro Pasetti said: “The revenues and EPS surprise was there for the quarter. There were bits I liked and others I did not; all to be covered in our Premium analysis next week.
“But the unmissable side of the XPO Logistics story is… [CEO] Brad Jacobs. The sheer determination with which he is trying to drive value from these levels is priceless,” he added.
XPO group revenues for the period were $4.22bn, compared with $4.15bn last year, driven entirely by its contract logistics operations in North America and Europe.
Its logistics operations generated revenue of $1.58bn for the third quarter, compared with $1.51bn last year, which was “led by strong demand from e-commerce and other consumer-related verticals, partially offset by Covid impacts in other areas and the company’s exit from certain low-margin business”.
Logistics’ adjusted ebitda was $162m for the quarter, compared with $142m last year.
Meanwhile, revenues at its transport arm were flat at $2.68bn, while adjusted ebitda was $329m, compared with $333m for the same period in 2019. However, this included a $6m impact from Covid-related costs, including $4m in less-than-truckload.
Mr Jacobs said: “Our business rebounded dramatically in the third quarter. Revenue, adjusted ebitda, adjusted EPS and free cash flow were all decisively higher than expected. Our growth was broad-based, spanning our service offerings and geographies.
“Supply chain outsourcing is accelerating and e-commerce continues to be a huge tailwind for us, particularly in contract logistics and last-mile. We grew our last-mile revenue by 11% in the quarter, year over year, by leveraging our North American hubs and XPO Direct network.”
And the company has issued new guidance for the fourth quarter of adjusted ebitda of $400m-$410m, and full year ebitda of approximately $1.35bn, which Mr Kerstens said was 4% and 8% ahead of consensus, respectively.