After a Rough Quarter, XPO Logistics Looks Ahead to the Recovery
No one was expecting the transportation and logistics industry to escape the coronavirus crisis unscathed, and indeed XPO Logistics (NYSE: XPO) had already warned investors of the effects of the pandemic. CEO Brad Jacobs said in April that 2020 would be a lost year for earnings growth in logistics and in most industries.
XPO's first-quarter earnings report shed more light on the challenges XPO is facing. Revenue in the first quarter declined 6.3% to $3.86 billion. As Jacobs said: "Our results were tracking well until mid-March, when COVID-19 reached pandemic proportions. At that point, our end markets rapidly deteriorated."
On the bottom line, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) declined modestly from $264 million to $253 million as technology initiatives, productivity gains, and pricing optimization helped lift adjusted EBITDA in its logistics segment. Adjusted earnings per share slipped from $0.51 to $0.47.
Source Fool.com
