Expeditors Meets Earnings, Revs Drop - Analyst Blog
May 02 2013 - 11:50AM
Zacks
Expeditors International of
Washington Inc. (EXPD) reported first quarter 2013
adjusted earnings of 39 cents per share at par with the Zacks
Consensus Estimate. Earnings for the quarter increased 8% from 36
cents.
Total revenue dipped 0.1% year over
year to $1.41 billion, missing of the Zacks Consensus Estimate of
$1.48 billion.
Gross profit (net revenue) dropped
0.3% year over year in the first quarter to $445.3 million. Gross
margin (yield) was 31.6%, flat year over year. Operating income
rose 3% year over year to $128.5 million.
Revenue
Segments
Airfreight
Services revenue fell 2.9% year over year to $620.3
million in the first quarter.
Ocean Freight and Ocean
Services revenue increased 2.6% year over year to
$445.5 million.
Customs Brokerage and
Other Services revenues inched up 1.9% year over year
to $344.6 million.
Liquidity
Expeditors exited the quarter with
operating cash flows of $165.3 million compared with $147.4 million
in the year-ago quarter.
Our Analysis
For the long term, we believe
Expeditors is poised for growth as it plans to expand its presence
and operations internationally, as well as invest in new
opportunities and services. Nevertheless, we remain cautious about
the near-term softness in demand, particularly in airfreight. We
expect lower demand caused by macroeconomic factors and higher
freight rates charged by third party carriers to continue remaining
significant headwinds over the near term.
Expeditors, which operates with the
likes of Matson, Inc. (MATX), CH Robinson
Worldwide Inc. (CHRW) and Pacer International,
Inc. (PACR) has a Zacks Rank #4 (Sell).
CH ROBINSON WWD (CHRW): Free Stock Analysis Report
EXPEDITORS INTL (EXPD): Free Stock Analysis Report
MATSON INC (MATX): Free Stock Analysis Report
PACER INTL INC (PACR): Free Stock Analysis Report
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