Latest news with #AliFaghri
Yahoo
07-08-2025
- Business
- Yahoo
XPO saves on outsourcing costs, prepares for market upside
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: XPO reduced its purchased transportation costs for its North American less-than-truckload segment in Q2 to $32 million, down about 53% compared to a year ago, per an earnings release. Investments in rolling stock in recent years have allowed XPO to cut outsourcing costs in the short term and position the carrier for success once the market improves, Chief Strategy Officer Ali Faghri told Trucking Dive. 'When demand recovers in the LTL industry, you're going to see truckload rates go up significantly, 20-, 30-, 40-percent,' he said. 'And that's really where we're going to see a bigger benefit, because we've essentially insulated our cost structure from this cost category.' Dive Insight: XPO can operate linehaul miles more efficiently than third-party contractors, the company notes, and so it's finding wins among a market slowdown. Outsourced linehaul miles were 6.8% of total miles in Q2 for the carrier, a significant shift from a rate of 15.9% a year ago, per company earnings reports. 'That's more than 900 basis points lower than last year and the best level in our history, with more opportunity ahead,' CEO Mario Harik said on a July 31 earnings call. New AI-powered linehaul models are 'driving additional savings, reducing normalized linehaul miles by 3%, empty miles by over 10% and freight diversions by more than 80%,' he added. The company aims to hire a director of AI, and Harik said the company plans to launch more AI integrations this year. XPO is also currently piloting how AI can improve pickup and delivery operations that lower costs, the CEO said. AI initiatives with other transportation players have led to efficiencies, such as ArcBest optimizing city routes to reduce miles and fuel costs and C.H. Robinson Worldwide offering price quotes, eliminating significant manual processing and speeding up output for customers. Recommended Reading XPO leans on AI to minimize miles, handling for LTL freight
Yahoo
22-07-2025
- Automotive
- Yahoo
What You Need to Know Ahead of Aptiv's Earnings Release
Schaffhausen, Switzerland-based Aptiv PLC (APTV) designs, manufactures, and sells vehicle components for the automotive and commercial vehicle markets in North America and internationally. With a market cap of $14.8 billion, the company operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The company is all set to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, July 31. Ahead of this event, analysts expect the company to report a profit of $1.77 per share, up 12% from $1.58 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in each of the last four quarters. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts expect APTV to report a profit of $7.18 per share, up 14.7% from $6.26 in fiscal 2024. Furthermore, its EPS is expected to grow 9.3% year over year to $7.85 in fiscal 2026. Shares of APTV have grown marginally over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 14.5% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 18.9% gain over the same time frame. On June 4, Guggenheim Securities analyst Ali Faghri downgraded Aptiv stock from a "Buy" to "Neutral," based on current and anticipated conditions affecting the company's performance. As a result of the downgrade, APTV stock fell over 1%, losing investor confidence. Wall Street analysts are moderately optimistic about APTV's stock, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, 12 recommend "Strong Buy," one advises 'Moderate Buy,' six suggest 'Hold,' and one indicates a 'Strong Sell' rating. The mean price target for APTV is $80.22, which indicates a 16.3% potential upside from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-05-2025
- Business
- Yahoo
XPO Is Bucking the Industry Headwinds. Can the Trucking Stock Keep Beating the Market?
In a difficult macro environment, XPO bested its peers and delivered solid results. The transportation company is executing on its key strategic goals. Despite the trade war, it looks poised to beat the market over the long term. It's no secret that transportation stocks are among the most sensitive to the macro economy. After all, when consumers and businesses sense a recession coming, they tend to pull back on spending, which means lower demand for the products that move via ships, trucks, and trains. Therefore, the transportation sector, which also moves raw materials for manufacturers, is seen as a leading indicator for the economy. So it's likely to be among the first to see the effect of headwinds in the economy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Coming into XPO's (NYSE: XPO) first-quarter earnings report, investors had only modest expectations for its results due to pressure from tariffs and weakening economic sentiment. Its peers in the less-than-truckload (LTL) industry had already reported underwhelming results. Sector stocks tumbled last Friday after rival Saia reported a sharp drop in profits, showing the effect of a weakening macro environment. However, XPO surprised investors this past Wednesday, reporting better-than-expected results as it continued to improve customer service, allowing it to raise prices and expand margins. The stock rose 9% on the news. XPO's revenue in the quarter fell 3.2% to $1.95 billion. Tonnage per day was down 7.5% and shipments per day fell 5.8%. However, the company continued to achieve an increase in yield, or price, thanks to better on-time rates and fewer damaged goods. Its damage claims ratio was just 0.3%, down sharply from 1.1% in 2020. Pricing in the quarter was up 6.9%, leading to an improvement in operating ratio, and the inverse in adjusted operating margin, which fell by 30 basis points sequentially to 85.9%. It was also down 370 basis points over the last two years, even with a soft freight environment. Chief Strategy Officer Ali Faghri was particularly pleased with the company's performance relative to its industry peers. XPO improved its on-time performance for the 12th straight quarter. In an interview with The Motley Fool, Faghri credited the company's in-house technology for efficiently managing its labor pool, saying: "In an environment where volumes are quite volatile, having the technology that allows our supervisors to know exactly how much labor we need any specific day, week, or month is a significant competitive advantage." The company also significantly reduced its outsourced transportation cost by 53% in the quarter, helping to boost margins. In the first quarter, the percentage of linehaul miles outsourced to third-party carriers fell to 8.8%, down from 14.7% in 2024 and 23.8% in 2022. The company is aiming to bring that number down to mid-single digits, which should provide a further tailwind in cost efficiency and service in the coming quarters. The LTL provider certainly has exposure to the macro environment, but so far this year performance has been stable. In fact, year-over-year tonnage growth has improved each month for the year, going from down 8.5% in January to down 5.7% in April, with the rest of the quarter expected to remain around that level. Additionally, the company will benefit from easier comparisons in the second half of the year. Overall, the company has faced a challenging freight environment for the last three years. But it's still on track to deliver at least 600 basis points of improvement in operating ratio from 2021 to 2027, and it looks well-positioned to outperform its peers based on recent results. XPO stock has tripled over the last three years, and the company has a long track record of beating the market. As the stock's pop on Wednesday shows, XPO should be able to keep climbing, especially if it can continue to outperform its peers. While the macro environment is likely to be challenging, the stock could surge once the industrial economy returns to growth. Before you buy stock in XPO, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XPO wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Jeremy Bowman has positions in XPO. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy. XPO Is Bucking the Industry Headwinds. Can the Trucking Stock Keep Beating the Market? was originally published by The Motley Fool Sign in to access your portfolio
