XPO Logistics ( XPO Quick Quote 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.
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 Quick Quote SKYW - Free Report) , Eagle Bulk Shipping ( EGLE Quick Quote EGLE - Free Report) and Expeditors International of Washington ( EXPD Quick Quote 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.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>