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XPO Logistics (XPO) to Report Q1 Earnings: A Beat in Store?

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XPO Logistics (XPO - Free Report) is scheduled to report first-quarter 2021 earnings on May 3, after market close.

The company has an impressive surprise record with respect as its earnings per share surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the same in the remaining one Notably, the Zacks Consensus Estimate for first-quarter earnings has been revised 2.2% upward to 93 cents per share over the past 60 days.

XPO Logistics, Inc. Price and EPS Surprise

XPO Logistics, Inc. Price and EPS Surprise

XPO Logistics, Inc. price-eps-surprise | XPO Logistics, Inc. Quote

 

Against this backdrop, let’s discuss the factors that might have impacted XPO Logistics’ performance in the March quarter.

We expect the company’s top line in the to-be-reported quarter to have been bolstered by upbeat revenues from the Transportation segment, driven by higher revenues from North America as conditions improve there. Notably, the Zacks Consensus Estimate for Transportation segment revenues in the to-be-reported quarter is currently pegged at $2,665 million, indicating an increase of 8.4% from the year-earlier period’s reported number. Moreover, the Zacks Consensus Estimate for transportation revenues from North America is currently pegged at $1,918 million, suggesting a rise of 7.7% from the year-ago period’s reported figure.

Improved freight conditions in North America are likely to have boosted the transportation segment’s revenues from North America for this freight broker in the March quarter. For example, the consensus mark for segmental freight brokerage revenues from North America is currently pegged at $719 million, implying an increase of 22.7% from the prior-year period’s reported number. Also, segmental less-than-truckload revenues from North America currently stand at $926 million, hinting at 1.8% growth from the year-ago quarter’s reported number.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for XPO Logistics this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: XPO Logistics has an Earnings ESP of +5.76% as the Most Accurate Estimate is pegged at 98 cents per share, 5 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: XPO Logistics carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

XPO Logistics’earnings (excluding 28 cents from non-recurring items) of $1.19 per share were 54 cents above the Zacks Consensus Estimate. Quarterly earnings also increased 6.3% on a year-over-year basis. Moreover, quarterly revenues of $4,665 million surpassed the Zacks Consensus Estimate of $4,219.3 million.

Other Stocks to Consider

Investors interested in the broader  Transportation  sector may also consider  SkyWest  (SKYW - Free Report) , Eagle Bulk Shipping  and  Expeditors International of Washington (EXPD - Free Report) as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.

SkyWest has an Earnings ESP of +35.34% and a Zacks Rank of 3, currently. The company is set to release first-quarter 2021 earnings on Apr 29.

Eagle Bulk has an Earnings ESP of +64.52% and a Zacks Rank of 3 at present. The company will release first-quarter 2021 results on May 6.

Expeditors has an Earnings ESP of +4.00% and is Zacks #2 Ranked, presently. The company will release first-quarter 2021 results on May 4.

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