XPO Logistics (NYSE:XPO) reported Q1 EPS of $1.25, $0.32 better than the analyst estimate of $0.93. Revenue for the quarter came in at $3.47 billion versus the consensus estimate of $3.22 billion.
GUIDANCE:
XPO Logistics sees FY2022 EPS of $5.20-$5.60, versus the consensus of $5.19.
- After adjusting for the sale of the intermodal operation, the company raised its 2022 target for adjusted EBITDA, and updated the underlying metrics, to reflect its higher expectations for 2022 financial performance:
- Adjusted EBITDA of $1.35 billion to $1.39 billion, including second quarter adjusted EBITDA of $360 million to $370 million;
- North American LTL expected to generate at least $1 billion of full year adjusted EBITDA;
- Year-over-year improvement of more than 100 basis points in North American LTL adjusted operating ratio, excluding gains on sales of real estate;
- Depreciation and amortization of approximately $385 million, excluding amortization of acquisition-related intangible assets;
- Interest expense of $150 million to $160 million;
- Effective tax rate of 24% to 25%; and
- Adjusted diluted EPS of $5.20 to $5.60, excluding amortization of acquisition-related intangible assets, and assuming 117 million diluted shares outstanding at year-end 2022.
With respect to 2022 cash flows:
- Gross capital expenditures of $500 million to $550 million;
- Net capital expenditures of $425 million to $475 million; and
- Free cash flow of $400 million to $450 million, excluding all transaction-related impacts.