- XPO Logistics (NYSEMKT:XPO) tumbled 9.6% in today's trade to its lowest since August 2017 after trimming its earnings forecast, reflecting broad anxiety over profits - especially for shipping companies that are bellwethers for the broader economy - in a U.S.-China trade war.
- XPO told investors today that it expects 12%-15% Y/Y growth in adjusted EBITDA in 2019 after earlier targeting 15%-18% growth, and expects to generate $650M in free cash flow in 2019, up only slightly from its outlook for $625M this year.
- The weak guidance likely is due to expected tax payments after the company exhausts tax credits this year from previous losses, says Seaport Global's Kevin Sterling.
- “This is just the market turning skittish,” says Cowen analyst Jason Seidl. “Before, when the market was bullish, news like this wouldn’t affect it. Now the market is skittish and news is affecting it.”
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