Expeditors International of Washington Earnings: Here’s Why Investors are Excited Now

Expeditors International of Washington Inc. (NASDAQ:EXPD) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.79%.

Expeditors International of Washington Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.38% to $0.45 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Decreased 0.3% to $1.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Expeditors International of Washington Inc. reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.43. It missed the average revenue estimate of $1.54 billion.

Quoting Management: “These results are very significant to us and we continue to be encouraged by our progress. The beginning signs of improvement we noticed during our 2013 first quarter, picked up during the second quarter,” said Peter J. Rose, Chairman and Chief Executive Officer. “While the global economy is still slowly emerging from the fundamental problems that have held it in thrall over the last five years, and slowly is the operative word, we’ve selectively grown market share this quarter. Our airfreight volumes were up again, for the third straight quarter, by 5%. Ocean FEU count on a yearly quarter-over-quarter basis was up 2%, as was our order management activity. The volatility of the pricing environment continues to require focused attention to both the buy and sell elements of the air and ocean marketplace. We think these results prove we did a good job of that during the second quarter,” Rose went on to say.”

Key Stats (on next page)…

Revenue increased 6.38% from $1.41 billion in the previous quarter. EPS increased 15.38% from $0.39 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.48 and has not changed. For the current year, the average estimate is a profit of $1.76, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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