XPO Logistics (XPO) Tops Q4 EPS by 52c, Revenues Beat; Offers FY21 EPS Guidance Above Consensus

February 10, 2021 4:18 PM EST

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XPO Logistics (NYSE: XPO) reported Q4 EPS of $1.19, $0.52 better than the analyst estimate of $0.67. Revenue for the quarter came in at $4.67 billion versus the consensus estimate of $4.25 billion.

CEO Comments

Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “Our fourth quarter revenue, earnings and free cash flow were all much better than expected. The investments we made in our people and technology in 2020 helped us to generate the highest revenue of any quarter in our history. We also doubled our truck brokerage net revenue year-over-year, and we improved our fourth quarter LTL adjusted operating ratio, excluding real estate gains, for the sixth straight year. The industry’s biggest tailwinds are at our back in 2021 — e-commerce fulfillment and returns, supply chain outsourcing and fast-growing customer demand for our digital capabilities.”

Jacobs continued, “Our 2021 guidance anticipates adjusted EBITDA of $1.725 billion to $1.8 billion, reflecting year-over-year growth of 24% to 29% in each of our segments.”

GUIDANCE:

XPO Logistics sees FY2021 EPS of $5.10-$5.85, versus the consensus of $3.88.

The company issued the following full-year 2021 targets:

  • Adjusted EBITDA of $1.725 billion to $1.8 billion, an increase of 24% to 29% year-over-year;
  • Depreciation and amortization of $780 million to $800 million;
  • Interest expense of $275 million to $285 million;
  • Effective tax rate of 24% to 26%; and
  • Adjusted diluted EPS of $5.10 to $5.85, excluding amortization of acquisition-related intangible assets.*

With respect to 2021 cash flows, the company issued the following targets:

  • Gross capital expenditures of $625 million to $675 million;
  • Net capital expenditures of $475 million to $525 million; and
  • Free cash flow of $600 million to $700 million.

* The company will present adjusted net income and adjusted diluted EPS excluding the amortization of acquisition-related intangible assets, starting with 2021 reporting. In 2021, amortization of acquisition-related intangible assets is estimated to be $145 million.

The company’s 2021 guidance excludes impacts associated with the planned spin-off of the logistics segment previously announced; and assumes 113 million diluted shares outstanding.

For earnings history and earnings-related data on XPO Logistics (XPO) click here.



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