S&P 500 (NYSE:SPY) component Expeditors International of Washington Inc. (NASDAQ:EXPD) reported its results for the third quarter. Expeditors International of Washington offers global logistics services through an international network supporting the movement and strategic positioning of goods.
Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now
Expeditors International of Washington Inc. Earnings Cheat Sheet
Results: Net income for Expeditors International of Washington Inc. fell to $88.5 million (42 cents per share) vs. $106.6 million (50 cents per share) a year earlier. This is a decline of 17% from the year-earlier quarter.
Revenue: Fell 4.7% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Expeditors International of Washington Inc. fell short of the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $1.38 billion.
Quoting Management: “Amidst the myriad of challenges we’ve faced this year it was not only satisfying but a very significant achievement to our productivity and cost management objectives to see our operating margin2 once again above 30%,” said Peter J. Rose, Chairman and Chief Executive Officer. “During our 30+ year operating history, we have never had the kinds of convergence of industry challenges, in both our customers and service providers’ industries than we have experienced this year.”
The company has now seen net income fall for four quarters in a row. In the second quarter, net income fell 11.6% while the figure fell 15.9% in the first quarter and 3.8% in the fourth quarter of the last fiscal year.
The company has missed analyst estiamtes for four quarters in a row. It fell short by 4 cents in the second quarter, by one cent in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.
Revenue has dropped for four quarters in a row. Revenue declined 4.8% to $1.5 billion in the second quarter. The figure fell 3.4% in the first quarter from the year earlier and dropped 5.1% in the fourth quarter of the last fiscal year from the year-ago quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 48 cents a share to 45 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.76 a share to $1.64 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: