Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Wednesday, Goldman Sachs maintained its Buy rating on shares of XPO Logistics (NYSE: NYSE:XPO) and increased the price target to $150.00 from the previous $136.00. This adjustment follows XPO's third-quarter earnings per share (EPS) report of $1.02, surpassing the Goldman Sachs and FactSet consensus estimates of $0.90 and $0.91, respectively.
The transport company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $333 million, exceeding forecasts by approximately $17 million. The less-than-truckload (LTL) EBITDA was particularly strong, coming in at $284 million compared to the Goldman Sachs estimate of $277 million and the FactSet consensus of $275 million.
XPO's year-over-year tonnage and yield growth, excluding fuel, were reported at -3.9% and 6.7%, respectively. These figures were slightly below Goldman Sachs' projection of a -3.5% decrease in tonnage but exceeded their yield growth forecast of 5.5%. The operating ratio, a measure of operational efficiency, stood at 84.2%, better than the expected 84.5%.
Goldman Sachs highlighted XPO's ability to reduce costs in a challenging tonnage environment, noting a notable decrease in purchased transportation costs to $58 million versus the anticipated $71 million. This cost management contributed to the lower operating ratio.
The firm expressed optimism about XPO's operational performance, citing improvements in both top-line yield and operating expenses as reasons to maintain the Buy rating.
InvestingPro Insights
XPO Logistics' strong performance, as highlighted in Goldman Sachs' report, is further supported by recent InvestingPro data. The company's revenue growth of 5.47% over the last twelve months and a quarterly growth of 8.45% as of Q2 2024 align with the positive outlook presented in the article. Additionally, XPO's EBITDA growth of 23.88% over the same period underscores the company's ability to improve profitability, which is consistent with Goldman Sachs' observations on cost management and operational efficiency.
InvestingPro Tips suggest that XPO is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.14. This indicates potential undervaluation, supporting Goldman Sachs' Buy rating and increased price target. The company's strong return over the last year, with a 55.2% price total return, further reinforces the positive sentiment.
It's worth noting that XPO is trading near its 52-week high, at 96.66% of that level, which aligns with the article's focus on the company's robust performance. Investors interested in a deeper analysis can find 14 additional InvestingPro Tips for XPO, providing a more comprehensive view of the company's financial health and market position.
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