UTi Worldwide Inc. (NASDAQ:UTIW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
UTi Worldwide Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 75% to $0.05 in the quarter versus EPS of $0.20 in the year-earlier quarter.
Revenue: Decreased 2.28% to $1.13 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: UTi Worldwide Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $1.15 billion.
Quoting Management: Eric W. Kirchner, chief executive officer, said, “Our results in the fiscal 2014 second quarter continue to reflect a lackluster global economy, challenging trading conditions and costs associated with our comprehensive business process transformation. The results underscore the importance of completing our transformation, and we have continued to make significant progress in that area. Since July 1, we have deployed our new freight forwarding operating system in seven countries — including the United States, United Kingdom and Hong Kong. There are currently 22 countries on the system to-date. In particular, the U.S. launch is a notable milestone in our deployment process. The implementation of our proprietary system in our largest market demonstrates that the platform works and is scalable. The 22 countries on the new system represent approximately 35 percent of total freight forwarding shipments. We continue to expect that more than 70 percent of shipments will be on the new system by the end of fiscal 2014.”
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