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XPO Posts Strong Q2 Earnings Beat on LTL Gains, Operating Ratio Improvement

XPO delivered second-quarter adjusted earnings per share of $1.70, beating consensus estimates by 23 cents and topping year-ago results by 65 cents. The less-than-truckload division drove outperformance, with revenue climbing 15% annually and improving 5% excluding fuel surcharges. Daily shipments rose 3% year-over-year despite a 2% decline in weight per shipment, reflecting success gaining market share in the small-to-midsize shipper segment. Yield improved 14% annually, or 4% excluding fuel costs. The LTL unit's adjusted operating ratio reached 79.9%, a 300 basis-point improvement annually and 100 basis points better than guidance. Salary and wage expenses as a percentage of revenue fell 360 basis points. XPO's European transportation segment reported 10% revenue growth to $927 million.