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XPO | XPO Financial Outlook

[QUOTE="However, Q2 and onwards will be very profitable, and XPO will be EPS positive in 2016.[/QUOTE]

Thanks for the tip.We should all dump all we can into this stock.Knowing this information in advance, we will all become wealthy.
 
WHO KNOWS105 said:
The source of those question's and answer's is from an Con-Way Employee to XPO upper Management, I didn't change a word.
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Awfully vague. Maybe you didn't change a word (not that we would know) but you are controlling the distribution. Context is important. What makes this manager a credible source? Does he/she know that this conversation was going to be made public? Who called this conversation a "financial outlook"?

falconfan said:
Thanks for the tip.We should all dump all we can into this stock.Knowing this information in advance, we will all become wealthy.
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Ha!
 
I also want to be transparent and open with everyone Therefore, I am not going to mention by name the people that I spoke with, thereby protecting these executives, although everyone here knows.(Mr. and Mr. ) hope that helps with your context and questions)

Those of you who are XPO longs and follow the company closely, will quickly pick out the important points.

XPO won't be EPS positive in the fourth quarter. It will be close, but no cigar. The first quarter is historically their worst, and XPO will have some one-time costs in Q4 but more in Q1. Therefore, Q1 won't be EPS positive either. However, Q2 and onwards will be very profitable, and XPO will be EPS positive in 2016.

However, management continues to push EBITDA over operating income, free cash flow, EPS, or any other bottom line metric. I pushed on this topic very hard, and management embraced free cash flow. We essentially figured out the company's FCF guidance/outlook on this phone call!

XPO will create $1.25 billion in EBITDA this year. It will have $500 million in CapEx, $350 million interest expenses, $70 million in working capital, and another $30 million in taxes. At the end of next year, XPO will have free cash flow of about $300 million. So, XPO trades at about 10 times forward FCF.

In 2017, FCF doubles to $600 million, meaning XPO trades at five times 2017's FCF. XPO acknowledges that $600 million may be conservative given that CapEx can and likely will decline to some degree, and because DNA will migrate from $670 million to $500 million. Also, EBITDA margins will eventually top 10%, and management believes their own EBITDA guidance is proving to be conservative.

XPO's strategy moving forward is to optimize its business. The company is not eyeing any acquisitions, and plans to pay off debt, drive margins higher, and then revisit an acquisition strategy in 2017. XPO must get through its Q4 and Q1 before big profits can be realized. This makes late February and early March a great time to load up on XPO.
 
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WHO KNOWS105 said:
XPO is suing Chet R and Paul L. They had a 1 year non-compete contract, but it had just expired and got overlooked, was supposed to be automatically re-signed every year, got overlooked or something. All I know is they are suing them for breach of contract
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What does that mean? If the contract expired they are free to work where they want, right? If this is the case the contract that was signed must have something added along with the non compete....
 
I don't know, I'm just repeating what I heard, isn't that what most guys's do on here....XPO was not happy about losing those 2 guys and wanted them, then they slapped a lawsuit on them when they joined YRC
 
WHO KNOWS105 said:
XPO is suing Chet R and Paul L. They had a 1 year non-compete contract, but it had just expired and got overlooked, was supposed to be automatically re-signed every year, got overlooked or something. All I know is they are suing them for breach of contract
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What does that mean? If the contract expired they are free to work where they want, right? If this is the case the contract that was signed must have something added along with the non compete....
WHO KNOWS105 said:
I don't know, I'm just repeating what I heard, isn't that what most guys's do on here....XPO was not happy about losing those 2 guys and wanted them, then they slapped a lawsuit on them when they joined YRC
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Were they under contract with Conway & it carried over with xpo until the end of the contract....
 
GO40 said:
What does that mean? If the contract expired they are free to work where they want, right? If this is the case the contract that was signed must have something added along with the non compete....

Were they under contract with Conway & it carried over with xpo until the end of the contract....
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They were under contract, 1 year non-compete, but it had to be resigned every year is what I was told, during the buy-out it slip through the cracks I guess and they quit, XPO wanted them, especially Chet, but the non-compete had not been signed. That is the way I understand it and was told XPO is suing, Suing who I don't know, I took it as them. But, He acted like it(suit) wasn't going anywhere. XPO is going to use our Optimizer because it is better and he is the one that over saw it and now he is with YRC, so that is why they are not happy about him leaving
 
WHO KNOWS105 said:
They were under contract, 1 year non-compete, but it had to be resigned every year is what I was told, during the buy-out it slip through the cracks I guess and they quit, XPO wanted them, especially Chet, but the non-compete had not been signed. That is the way I understand it and was told XPO is suing, Suing who I don't know, I took it as them. But, He acted like it(suit) wasn't going anywhere. XPO is going to use our Optimizer because it is better and he is the one that over saw it and now he is with YRC, so that is why they are not happy about him leaving
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Much clearer now.... Tks
 
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