XPO Q3 Adjusted EPS Tops Estimates at $1.70 on Pricing, Efficiency Gains

XPO (NYSE: XPO) reported third-quarter adjusted earnings per share of $1.70, 13 cents above the consensus estimate and 63 cents higher year over year, driven by stronger pricing and operational efficiency initiatives. Consolidated revenue rose 12% year over year to $2.37 billion but fell $10 million short of analysts' expectations. Less-than-truckload revenue climbed 17% to $1.47 billion, or 9% excluding fuel surcharges, as diesel prices rose 48% year over year. LTL tonnage grew 5% on a 6% increase in daily shipments, while yield rose 12%. The LTL unit posted an 80.1% adjusted operating ratio, 260 basis points better year over year and in line with guidance for sub-81%, far outpacing the typical 200 to 250 basis points of sequential degradation. European transportation revenue rose 5% to $900 million, with adjusted EBITDA up 26% to $48 million. The company hosts an earnings call at 8:30 a.m. EDT Thursday.