UTi Worldwide Earnings: Here’s Why Investors are Selling Shares Now

UTi Worldwide Inc. (NASDAQ:UTIW) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.

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UTi Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35% to $0.13 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 4.73% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: UTi Worldwide Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.14. It beat the average revenue estimate of $1.02 billion.

Quoting Management: Eric W. Kirchner, chief executive officer, said, “Results in our fiscal 2013 fourth quarter reflect ongoing weakness in the airfreight market and a challenging pricing environment in freight forwarding. In addition, the competitive dynamics in the industry remain the toughest seen in many years. In contract logistics and distribution, we experienced reduced activity at existing locations and made investments to prepare for newly won business. While we secured new business in both segments in the fourth quarter, declines in net revenue from existing accounts more than offset these wins. Clearly these results are not satisfactory. In response, we completed in January and February the previously announced actions necessary to reduce expenses, and we will continue to manage costs throughout fiscal 2014. We also have begun to take steps designed to improve our growth rates, including making changes to our sales organization.”

Key Stats (on next page)…

Revenue decreased 2.65% from $1.13 billion in the previous quarter. EPS decreased 18.75% from $0.16 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 $0.14 and has not changed. For the current year, the average estimate has moved down from a profit of $0.66 to a profit of $0.63 over the last ninety days.

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

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