XPO Logistics, Inc. (NYSE: XPO), a leading provider of freight transportation services, has released the following results in advance of its third quarter 2022 earnings announcement and conference call.
For the third quarter 2022, the company expects to report:

– Revenue of approximately $3.04 billion

– Operating income of $181 million to $185 million

– Earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, of $348 million to $352 million

Pro forma for the planned spin-off of RXO, the company expects net leverage, expressed as net debt divided by trailing 12-month adjusted EBITDA, to be approximately 2.0X as of December 31, 2022.
For its North American less-than-truckload (LTL) segment, the company expects third quarter 2022 results to include:

– A year-over-year increase in revenue per hundredweight, excluding fuel, of approximately 7%

– A year-over-year decrease in weight per day of approximately 2.9% for the full quarter, with weight per day improving each month and inflecting positive year-over-year in September

– An operating ratio of approximately 85.1%

– An adjusted operating ratio, a non-GAAP financial measure, of 82.9% or better, reflecting at least 150 basis points of improvement from the prior year’s third quarter, excluding gains on real estate sales in both periods; there were no gains on real estate recorded in the third quarter of 2022 

The company has reiterated its expectation that at least $1 billion of full year 2022 adjusted EBITDA will be generated by North American LTL, including up to $50 million of gains on sales of real estate in the fourth quarter.
The company now expects to achieve a year-over-year improvement of 50 to 100 basis points in its North American LTL adjusted operating ratio for full year 2022, excluding gains on sales of real estate; this compares with its prior target of at least 100 basis points of improvement.

The full release can be found here.

Stock down 0.6% in after-hour trade after rising 3.6% to $48.48 on Monday.

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