XPO Earnings: Share Gains From Failed Yellow Offset Soft Underlying Demand; Margins Impressive

XPO’s third-quarter organic top-line trend swung positive year over year, rising 2%—much better than the 6% decline last quarter thanks to LTL shipment diversions from bankrupt peer Yellow. We've already been baking in a meaningful sequential uptick in LTL volume and pricing, but revenue modestly beat our forecast on strong yields. XPO's flagship LTL top line rose 2%, versus an 8% second-quarter decline. European trucking segment revenue grew 1.5%, likely driven by lingering pricing strength.