Stock Alert: XPO Logistics Rises After Spin-off Announcement Of Its Unit

(RTTNews) - Shares of XPO Logistics, Inc. (XPO) jumped 15.13 % on Thursday after the company announced that it is considering the sale or spin-off of one or more of its business units.

According to Bradley Jacobs, chairman, and chief executive officer of XPO Logistics, the company is exploring the sale or spin-off to increase XPO's valuation, which is significantly lower than the company's competitors.

The stock hit a new high of $96.2 yesterday, before closing at $95.35. XPO is more than 50% up in the past one year.

XPO Logistics operates through two segments- transportation and logistics, with transportation being the major revenue contributor.

In October, the company had lowered its full-year revenue outlook to a decline of 2.5%- 4% year-over-year from 1% decline to 1% growth, guided earlier.

In the third quarter ended September 30, 2019, revenue had decreased to $4.15 billion from $4.34 billion for the same period a year ago. Adjusted EPS, however, rose to $1.18 from $0.89 in the corresponding quarter last year. Analysts were expecting $1.04.