XPO Logistics (NYSE:XPO) saw its stock soar 5.20% in pre-market trading on Wednesday, following the release of its first-quarter 2025 financial results. The company's earnings surpassed analyst expectations, despite a slight miss on revenue.
XPO reported an adjusted earnings per share (EPS) of $0.73, significantly beating the analyst consensus estimate of $0.65 by 12.31%. This strong performance in profitability appears to be the primary driver behind the stock's upward movement. The company's adjusted EBITDA also exceeded expectations, coming in at $278 million compared to the estimated $272.5 million.
However, XPO's revenue for the quarter stood at $1.95 billion, falling short of the projected $1.98 billion and representing a 3.17% decrease from the same period last year. Despite this slight revenue miss, investors seem to be focusing on the company's ability to deliver stronger-than-anticipated earnings, suggesting effective cost management and operational efficiency in a challenging economic environment.