Expeditors International of Washington Inc. Earnings Cheat Sheet: Powering Ahead

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Expeditors International of Washington, Inc. (NASDAQ:EXPD) from reporting a profit boost in the third quarter. Expeditors International of Washington offers global logistics services through an international network supporting the movement and strategic positioning of goods.

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Expeditors International of Washington Earnings Cheat Sheet for the Third Quarter

Results: Net income for the air delivery and freight services company rose to $106.6 million (50 cents per share) vs. $96.1 million (44 cents per share) in the same quarter a year earlier. This marks a rise of 10.9% from the year earlier quarter.

Revenue: Fell 3.7% to $1.61 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EXPD beat the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $1.73 billion.

Quoting Management: “It is reassuring to again report record net revenue, operating income and net earnings results, particularly amid the economic challenges some would have us believe define our potential,” said Peter J. Rose, Chairman and Chief Executive Officer. “Providing exceptional customer service and market competitive rates to our customers and buying strategically from our quality service providers allows our people to utilize their intellectual capital to optimize efficiency and financial results. This is the reason why we have consistently been able to grow net revenue even when gross revenue doesn’t show the same commensurate levels of growth. Maximizing gross revenues to the potential detriment of operating income has never been what’s motivated us.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 5.2% and in the first quarter, the figure rose 49%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 60.8%.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 44 cents versus a mean estimate of net income of 46 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 49 cents per share, down from 51 cents ninety days ago. The average estimate for the fiscal year is $1.84 per share, down from $1.90 ninety days ago.

Competitors to Watch: UTi Worldwide Inc. (NASDAQ:UTIW), C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), Pacer International, Inc. (NASDAQ:PACR), Hub Group, Inc. (NASDAQ:HUBG), Roadrunner Transportation Services Hold. (NYSE:RRTS), Echo Global Logistics, Inc. (NASDAQ:ECHO), Vitran Corp., Inc. (NASDAQ:VTNC), FedEx (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS), and J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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