XPO INC Reports Second Quarter FY2023 Earnings Results on August 4, 2023
August 9, 2023
🌥️Earnings Overview
On August 4th 2023, XPO INC ($NYSE:XPO) reported their second quarter FY2023 earnings for the period ending June 30th 2023. Total revenue for this period decreased to USD 1917.0 million, a 40.7% drop from the same period the previous year. Similarly, net income decreased by 76.6%, to USD 33.0 million.
Price History
On Friday, XPO INC‘s stock opened at $71.4 and closed at $71.3, up by 4.2% from prior closing price of 68.5. The overall performance of the company in the second quarter was highly impressive due to the strong demand for its services and the improved efficiency of its operations. Revenue per share also rose by 4% year-over-year. XPO INC management also reported that it has successfully implemented a number of initiatives to improve efficiency and reduce costs. These initiatives include streamlining processes, leveraging technology, and investing in new equipment and personnel.
The company’s strategic investments have also enabled it to take advantage of emerging market opportunities and capitalize on them. Overall, XPO INC’s strong performance in the second quarter of FY2023 has given investors confidence in the future of the company. The company’s cost-controlling measures and strategic investments have enabled it to remain competitive in an ever-changing market landscape. With continued focus on efficiency and growth, XPO INC is well positioned to deliver value to its shareholders in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xpo Inc. More…
| Total Revenues | Net Income | Net Margin |
| 4.84k | 84 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xpo Inc. More…
| Operations | Investing | Financing |
| 635 | -560 | -225 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xpo Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.35k | 5.23k | 9.65 |
Key Ratios Snapshot
Some of the financial key ratios for Xpo Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -32.4% | -5.2% | -6.5% |
| FCF Margin | ROE | ROA |
| 0.5% | -18.1% | -3.1% |
Analysis
GoodWhale has conducted an analysis of XPO INC‘s wellbeing, and the results are presented below. XPO INC is rated as a medium risk investment in terms of financial and business aspects, according to our Risk Rating. Additionally, we have detected two risk warnings on their income sheet and balance sheet that may be of concern to investors. To view these warnings in detail, become a registered user on our website. More…
Peers
The transportation and logistics industry is highly competitive, with XPO Logistics Inc vying for market share against Mitsui-Soko Holdings Co Ltd, Hub Group Inc, and PKP Cargo SA. All four companies offer similar services, including freight forwarding, warehousing, and logistics management. However, each company has its own unique strengths and weaknesses that give it an advantage or disadvantage in the marketplace.
– Mitsui-Soko Holdings Co Ltd ($TSE:9302)
Mitsui-Soko Holdings Co Ltd is a Japanese company that provides logistics and distribution solutions. The company has a market cap of 79.35B as of 2022 and a Return on Equity of 21.72%. Mitsui-Soko Holdings Co Ltd has a wide range of services including transportation, warehousing, and distribution. The company also offers e-commerce solutions and value-added services.
– Hub Group Inc ($NASDAQ:HUBG)
Hub Group is a transportation management company that provides intermodal, truck brokerage and logistics services. The company operates in two segments, Intermodal and Truck Brokerage. Its intermodal services involve the transportation of freight in trailers or containers by rail and its truck brokerage segment includes arranging for the movement of freight by third-party carriers.
Hub Group’s market cap is $2.54 billion as of 2022. The company’s return on equity is 21.81%. Hub Group’s intermodal segment is its largest business, accounting for 70% of its total revenue. The company’s truck brokerage segment is its second largest business, accounting for 20% of its total revenue.
– PKP Cargo SA ($LTS:0QI0)
PKP Cargo SA is a leading rail freight operator in Central and Eastern Europe. The company has a market cap of 509.68M as of 2022 and a Return on Equity of -1.69%. PKP Cargo SA offers a full range of rail freight services, including transportation of bulk materials, containers, general cargo, and dangerous goods. The company has a strong presence in Poland, Czech Republic, Slovakia, and Romania.
Summary
Investors reacted positively to the second quarter earnings results of XPO INC, with their stock price increasing on August 4, 2023. The company reported total revenues of USD 1917.0 million and a net income of USD 33.0 million. Although total revenues decreased by 40.7% compared to the same period in the prior year, the net income showed an even larger decrease of 76.6%.
Investors are likely encouraged by the company’s ability to continue to generate income despite the revenue drop, indicating that cost-cutting measures taken by the company have been effective. Going forward, investors will be watching to see if the company can make further improvements to its bottom line while continuing to grow its revenues.
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