XPO Logistics, Inc.

XPO Details

XPO Logistics, Inc. (NYSE: XPO) is engaged in the business of freight transportation.

Financial Results for Q3 FY 2022

• XPO’s revenue stood at $3.04 billion for Q3 FY 2022 as compared to $3.27 billion for Q3 FY 2021.
• Its net income from continuing operations attributable to common shareholders amounted to $131 Mn for Q3 as compared to $21 million for Q3 FY 2021.
• The company’s record results in Q3 reflect how strongly XPO’s North American businesses are positioned for growth as the standalone companies.

Key Updates

XPO has announced that it has wrapped up the previously announced spin-off of RXO, Inc., which led to the creation of 2 independent as well as publicly traded companies. Now, RXO would begin “regular way” trading on NYSE under the symbol “RXO.”

This separation was completed via a distribution to XPO stockholders of 1 share of RXO common stock for every 1 share of XPO common stock held as of the record date for the distribution (October 20, 2022). RXO shares were distributed at 12:01 a.m. (ET) on November 1, 2022. The distribution was intended to be tax-free to XPO stockholders. The opening stock price of RXO was $20.25 per share on November 1, 2022.

Outlook

For FY 2022, for the North American LTL business, the company is expecting at least $1 Bn of full year adjusted EBITDA, which is including gains on sales of real estate of up to $50 Mn in Q4. 

Key Risks

XPO is exposed to the volatility in fuel prices which could adversely affect its profitability. Also, it is susceptible to the economic recessions in North America as well as Europe that could adversely impact the business.

Stock Information

As of September 30, 2022, XPO had $1.54 Bn of total liquidity, including $544 Mn of cash and cash equivalents and ~$1 Bn of available borrowing capacity.

On 1^st November 2022, the stock price of XPO Logistics, Inc. (XPO) ended at $32.50 per share.

XPO Logistics, Inc. (XPO) is a part of Kalkine’s Global Big Money Product

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

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