XPO predicts earnings boost as E-commerce lifts trucking demand
XPO Logistics Inc. forecast a jump in a key profit measure as soaring e-commerce spurs demand for its trucking and warehouse services.
Earnings before interest, taxes, depreciation and amortization will be $1.725 billion to $1.8 billion this year, an increase of as much as 29% from 2020, XPO said in a statement Wednesday. That topped the $1.71 billion average of analyst estimates compiled by Bloomberg.
XPO is benefiting from increased online shopping during the coronavirus pandemic as well as supply-chain outsourcing, and sales rose to a record in the fourth quarter. Average annual investment of $500 million in technology capabilities has helped boost profit at the company's logistics, brokerage and trucking businesses, Chief Executive Officer Brad Jacobs said in the statement. The company announced plans in December to spin off its logistics operation.
Fourth-quarter adjusted earnings rose to $1.19 a share, easily exceeding the average analyst estimate of 67 cents. Sales climbed 13% to $4.67 billion. Analysts had predicted $4.25 billion.