Upcoming AWS Coverage on Hub Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 8, 2017 / Active Wall St. announces its post-earnings coverage on XPO Logistics, Inc. (NYSE: XPO). The Company announced its fourth quarter and fiscal 2016 financial results on February 21, 2017. The freight management Company exceeded top- and bottom-line expectations and also re-affirmed its forecasts. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of XPO Logistics' competitors within the Air Delivery & Freight Services space, Hub Group, Inc. (NASDAQ: HUBG), reported on February 02, 2017, its Q4 and full year 2016 results. AWS will be initiating a research report on Hub Group in the coming days.

Today, AWS is promoting its earnings coverage on XPO touching on HUBG. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended December 31, 2016, XPO Logistics' revenue increased 10.0% year-over-year to $3.68 billion, exceeding analysts' consensus. For FY16, the Company reported total revenue of $14.62 billion, a 91.8% increase from FY15.

For Q4 2016, XPO's net income attributable to common shareholders was $27.3 million, or earnings of $0.22 per diluted share, compared with a net loss attributable to common shareholders of $62.8 million, or a loss of $0.58 per diluted share, for the same period in 2015. The Company's adjusted net income attributable to common shareholders was $29.8 million, or adjusted earnings of $0.24 per diluted share, for Q4 2016 compared with an adjusted net loss attributable to common shareholders of $23.1 million, or an adjusted loss of $0.21 per diluted share, for Q4 2015. The adjusted net income attributable to common shareholders for the quarter excluded: $34.9 million, or $21.8 million after-tax, of integration and rebranding costs; $16.5 million, or $10.1 million after-tax, of non-cash debt extinguishment costs related to the sale of the truckload unit; a benefit of $33.0 million, or $20.0 million after-tax, from unrealized gains on foreign exchange; and a $9.6 million benefit to the Company's tax liability due to lower tax rates enacted in France. XPO's earnings numbers surpassed market estimates of $0.20 per share.

XPO's net income attributable to common shareholders was $63.1 million, or $0.53 per diluted share, compared with a net loss of $245.9 million, or a loss of $2.65 per diluted share, for FY15. The adjusted net income attributable to common shareholders for FY16 was $121.5 million, or adjusted earnings of $1.00 per diluted share, reflecting a substantial improvement from the adjusted net loss attributable to common shareholders of $36.9 million, or an adjusted loss of $0.40 per diluted share, for the year ago period.

For Q4 2016, XPO's adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA"), improved to $291.1 million for the quarter, excluding $34.9 million of transaction, integration, and rebranding costs compared to $217.6 million for Q4 2015. The Company's adjusted EBITDA for FY16 improved significantly to $1.25 billion compared with $493.1 million for 2015. XPO's adjusted EBITDA for FY16 excluded $103.2 million of transaction, integration, and rebranding costs.

For the full year 2016, the Company generated $625.4 million of cash flow from operations and $210.9 million of free cash flow.

Results by Segment

During Q4 2016, XPO's transportation segment generated total revenue of $2.33 billion compared to $2.10 billion for the same period in 2015. The y-o-y increase in revenue was primarily due to the acquisition of Con-way Inc. on October 30, 2015, and to organic growth in both North America and Europe, which was partially offset by the divestiture of the North American full truckload unit on October 27, 2016. XPO stated that organic revenue growth for the segment was led by the last mile unit, primarily driven by an increase in ecommerce business. Revenue growth was partially offset by softness in North American intermodal volumes.

For Q4 2016, operating income for the transportation segment increased to $84.0 million compared with an operating loss of $6.1 million a year ago. Adjusted EBITDA for the segment improved by 40% to $211.9 million versus $151.4 million in the year ago same period. The increase in operating income and adjusted EBITDA were primarily attributable to the Con-way acquisition, y-o-y operating margin improvement in the North American less-than-truckload unit, and growth in the last mile unit.

During Q4 2016, XPO's logistics segment generated total revenue of $1.38 billion compared with $1.27 billion for Q4 2015. The y-o-y increase in revenue was primarily due to the Con-way acquisition and to organic growth in both North America and Europe. Operating income for the logistics segment increased to $51.2 million compared with $34.8 million a year ago. In the reported quarter, adjusted EBITDA for the segment improved to $108.6 million compared with $98.5 million a year ago.

Financial Targets

XPO reaffirmed its full year 2017 targets for adjusted EBITDA of at least $1.350 billion and $1.575 billion for 2018. The Company issued a 2017-2018 cumulative free cash flow target of approximately $900 million, including at least $350 million of free cash flow generated in FY17.

Stock Performance

On Tuesday, March 07, 2017, the stock closed the trading session at $50.69, slipping 2.16% from its previous closing price of $51.81. A total volume of 894.33 thousand shares have exchanged hands. XPO Logistics' stock price advanced 12.74% in the last three months, 41.67% in the past six months, and 91.86% in the previous twelve months. Moreover, the stock gained 17.45% since the start of the year. At Tuesday's closing price, the Company's shares net capitalization stand at $5.53 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street