Transportation and logistics solutions provider, XPO Logistics Inc, caught many of its investors off guard after the surprising announcement of its 2019 outlook.
Hearing the earnings warning and seeing the negative report from short-seller Spruce Point Capital, investors rushed for the exits as shares of the transportation company dropped nearly -9.6% on Wednesday and another -20.4% on Thursday.
Amidst this chaos, XPO hit investors with another announcement that may have helped turn the tide. The Board of Directors of XPO Logistics authorized the company to repurchase up to $1 billion of its common stock, and shares of the company rebounded nearly +7.3% on Friday’s pre-trade.
Carrying a nearly $4.7 billion debt burden, the company revealed that it intends to fund the repurchases program with existing cash, borrowing on XPO's revolving credit facility and/or other financing sources.