Shares of XPO Logistics (XPO -4.03%) fell more than 11% on Friday morning after the transportation company reported second-quarter earnings. XPO did report a loss in what was a noisy quarter due to the COVID-19 pandemic and a number of one-time items, but the sell-off appears to be an overreaction to what seems to have been a decent quarter.
Full Answer
What happened to XPO Logistics?
On July 13, the board of XPO Logistics announced that it had approved the "separation of its logistics segment through the distribution of all of the outstanding shares of common stock of its wholly owned subsidiary," GXO Logistics ( NYSE:GXO), "to holders of XPO common stock."
What is the upside for XPO Logistics'stock?
23 Wall Street analysts have issued 12 month target prices for XPO Logistics' shares. Their forecasts range from $75.00 to $170.00. On average, they expect XPO Logistics' stock price to reach $116.22 in the next year. This suggests a possible upside of 52.1% from the stock's current price.
What are analysts'target prices for XPO Logistics'stock?
23 Wall Street analysts have issued 12 month target prices for XPO Logistics' shares. Their forecasts range from $75.00 to $170.00. On average, they expect XPO Logistics' stock price to reach $116.22 in the next year.
Where can I buy XPO shares?
Shares of XPO can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Compare Top Brokerages Here.
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Will XPO stock go up?
XPO Logistics Inc quote is equal to 54.670 USD at 2022-07-22. Based on our forecasts, a long-term increase is expected, the "XPO" stock price prognosis for 2027-07-16 is 68.239 USD. With a 5-year investment, the revenue is expected to be around +24.82%. Your current $100 investment may be up to $124.82 in 2027.
Is XPO Logistics a good stock to buy?
XPO Logistics's analyst rating consensus is a 'Strong Buy. This is based on the ratings of 18 Wall Streets Analysts.
What's going on with XPO Logistics?
XPO Logistics will now focus just on trucking, as it spins off and sells other businesses. XPO Logistics plans to become solely a trucking company, spinning off its high-tech truck brokerage business into a separate publicly traded firm.
Is XPO going to split?
After a successful business separation last year, XPO Logistics (XPO 0.68%) is looking to the same playbook again. The company announced in March it was planning to separate the truck brokerage business from its core LTL operations, and new details emerged on the plans in its latest earnings report.
Who is buying XPO Logistics?
STG LogisticsSTG Logistics has acquired XPO Logistics' intermodal division, the third-largest provider of containerized transportation services in North America, in an all-cash transaction totaling approximately $710 million.
Does xpo pay a dividend?
Dividend Overview. XPO does not currently pay a dividend.
Is XPO Logistics getting bought out?
XPO Logistics Inc. has sold its North American intermodal business to STG Logistics Inc. for approximately $710 million, continuing to streamline the XPO business while making STG an integrated containerized logistics company.
Is XPO Logistics being sold?
-based XPO Logistics said today it has sold its intermodal business to Chicago-based STG Logistics, an asset-light provider of complex and highly customized logistics and transportation services focused on the global supply chain, for roughly $710 million.
Are trucking companies going out of business?
According to Broughton Capital, 640 trucking companies in the United States went bankrupt – in the first six months of 2019. While this number seems high, what is shocking is that it's nearly three times the amount of trucking-specific bankruptcy filings during the entire 2018 calendar year.
Who would buy xpo intermodal?
STG LogisticsSTG Logistics has acquired XPO Logistics' intermodal division for $710 million, the companies announced Friday, advancing XPO's spin-off plans revealed earlier this month.
When did XPO stock split?
XPO announced in December 2020 that it was splitting its logistics and trucking businesses into separately traded firms, aimed at giving each unit a more defined focus; that move was completed in August.
What companies does XPO own?
These include three publicly traded companies: XPO Logistics, Inc. (NYSE: XPO), United Rentals, Inc. (NYSE: URI) and United Waste Systems, Inc.
NYSE: XPO
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What happened
On Monday morning, shares of XPO Logistics ( XPO 0.73% ) opened down more than 40%, but there is no bad news to report. The company completed its long-awaited split in two, meaning half of the value is now represented in a different ticker.
So what
Over the past decade, XPO has been a top-performing stock, but in recent years the company's valuation has lagged some rivals. In response, XPO late last year announced plans to split into two more pure-play companies focused on trucking and supply chain management.
Now what
If you combine the XPO price with the GXO price, the total value is actually up about 5% from Friday's close as of 10 a.m. EDT on Monday. But expect the data to be messy for a few days as the data sources adjust to the split.
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Key Points
A big corporate shake-up was behind the drop in XPO's shares, only it isn't anywhere near as bad as it seems.
NYSE: XPO
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What happened
Shares of shipping provider XPO Logistics ( XPO 0.73% ) fell a dramatic 37% in August, according to data from S&P Global Market Intelligence. The interesting thing here is that the drop occurred in basically one fell swoop, which is an indication that there's something unique going on.
So what
On July 13, the board of XPO Logistics announced that it had approved the "separation of its logistics segment through the distribution of all of the outstanding shares of common stock of its wholly owned subsidiary," GXO Logistics ( GXO -3.57% ), "to holders of XPO common stock." Effectively, it was spinning off its logistics arm, with each share of XPO Logistics receiving one share of GXO..
Now what
With meme stocks trading in incredibly erratic, and often irrational, ways, it's easy to see a stock make a big move and chalk it up to mercurial investors. You really can't do that, as the situation with XPO and GXO proves. More research is often needed to suss out what's going on.
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What happened
Shares of XPO Logistics ( XPO 3.39% ) fell more than 11% on Friday morning after the transportation company reported second-quarter earnings. XPO did report a loss in what was a noisy quarter due to the COVID-19 pandemic and a number of one-time items, but the sell-off appears to be an overreaction to what seems to have been a decent quarter.
So what
After markets closed Thursday XPO reported a second-quarter loss of $0.63 per share on revenue of $3.5 billion, beating analyst expectations for a $0.73 per share loss on revenue of $3.38 billion.
Now what
Clearly, XPO is feeling the impact of the current market conditions. While the adjusted EBITDA number beat expectations, it was down 62% year over year. And less-than-truckload shipping revenue declined 20%.
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When is XPO earnings call?
XPO Logistics will be holding an earnings conference call on Thursday, July 29th at 8:30 AM Eastern. Interested parties can register for or listen to the call using this link or dial in at 201-612-7415 with passcode "13721352".
How much does XPO Logistics make?
How much money does XPO Logistics make? XPO Logistics has a market capitalization of $16.05 billion and generates $16.25 billion in revenue each year. The transportation company earns $110 million in net income (profit) each year or $2.01 on an earnings per share basis.
Why GXO Logistics Is Buying Clipper Logistics
Barely six months after it was spun off from XPO Logistics, GXO Logistics (NYSE: GXO) looks ready to make its first big mergers and acquisition (M&A) deal.
XPO Logistics Awarded LTL Carrier Partner of the Year by GlobalTranz
GREENWICH, Conn., Feb. 24, 2022 (GLOBE NEWSWIRE) -- XPO Logistics, Inc. (NYSE: XPO), a leading provider of freight transportation services, has been awarded Carrier Partner of the Year for its less-than-truckload (LTL) performance by GlobalTranz Enterprises, LLC.
GXO Logistics executive: 'We're clearly in the sweet spot'
Partnerships with growing e-commerce companies means potentially explosive growth in 2022 GXO logistics, whose North American operations center is in High Point.
