Greenwich, Conn.-based trucking and logistics leader XPO bolted higher Monday on its third-quarter report, as freight markets continued to book efficiency gains.
XPO's earnings rose a modest 2%. Sales came in at $1.98 billion — down almost 35% but ahead of views for $1.93 billion, according to FactSet.
The company earned a healthy boost from the August bankruptcy filing of Yellow, the dominant player in the less-than-truckload market, which halted operations July 30.
A news release from CEO Mario Harik noted "solid growth in revenue and profitability, and strong forward momentum," during the quarter.
XPO reported third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $278 million, marking a firm advance in fleet efficiency. That was up from $262 million a year ago and well above estimates for $244 million.
Old Dominion Freight Line turned in a its third-quarter results last Wednesday, showing a notable rising in fleet efficiency. Analysts generally held their ratings steady following the results, while trimming price targets moderately based on the economic outlook. Stifel upgraded the stock to a buy on Thursday, setting its price target at 416. ODFL shares fell 6.3% last week, in a third straight weekly decline.
XPO leapt 13% at Monday's open, after posting a 6.6% loss last week. Monday's move lifted the stock into positive territory for October, pointing it toward its seventh straight monthly advance. It has a year-to-date gain of 128%.
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