XPO provides favorable February update

Similar to other less-than-truckload carriers, XPO saw a notable year-over-year (y/y) improvement in volumes in February when compared to January.

In a Tuesday update following the market close, the carrier said tonnage grew 3.5% y/y in February as a 5.8% increase in shipments was partially offset by a 2.2% decline in weight per shipment. The tonnage increase was an improvement from a modest decline in January.

Further, XPO (NYSE: XPO) was facing tougher tonnage comps than most peers. When stacking January and February growth rates for the past two years, XPO’s tonnage was up roughly 1.5% in each month, which was largely in line with Saia Inc. (NASDAQ: SAIA) and well ahead of double-digit declines at Old Dominion Freight Line (NASDAQ: ODFL).

Source: freightwaves.com