Expeditors International of Washington Inc.
) reported second-quarter 2014 adjusted earnings of 46 cents per
share, missing the Zacks Consensus Estimate of 47 cents. Results,
however, improved 2% from the year-ago earnings of 45 cents per
Expeditors International Of Washington, Inc -
Earnings Surprise | FindTheBest
Total revenue rose 6% year over year to $1.6 billion and were in
line with the Zacks Consensus Estimate. Steady air and ocean
freight volumes along with a good show in the customs brokerage
business boosted the company's performance in the quarter.
Gross profit (net revenue) increased 3% year over year in the
quarter to $484.7 million. Gross margin (yield) was 30.3%, down
from 31.4% in the year-ago quarter.
In the second quarter, operating expense rose 7.1% to $1.5
billion while operating income dropped 1% to $142.4 million.
revenues improved 3.8% year over year to $667.3 million in the
Ocean Freight and Ocean Services
revenues increased 9% year over year to $536.4 million.
Customs Brokerage and Other Services
revenues rose 7.4% year over year to $395.4 million.
Expeditors' exited the second quarter with cash and cash
equivalents of $970.6 million as compared to $1,247.6 million at
the end of 2013. Operating cash flows were $44.9 million versus $84
million in the prior-year quarter.
We believe continued strength in the airfreight business owing
to growing trade between the U.S. and China places the company
favorably in the freight forwarding and customer brokerage
business. Further, Expeditors' growing supply chains and
cost-control measures should support revenue and margin expansion
Nevertheless, we remain cautious about competitive threats from
other logistic companies like CH Robinson Worldwide Inc. (
), FedEx Corporation (
) and Radiant Logistics, Inc. (
) along with weak consumer and business demand as well as higher
freight rates charged by third party carriers which might hurt the
Zacks Rank and Other Stocks
Currently, Expeditors carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CH ROBINSON WWD (CHRW): Free Stock Analysis
EXPEDITORS INTL (EXPD): Free Stock Analysis
FEDEX CORP (FDX): Free Stock Analysis Report
RADIANT LOGIST (RLGT): Free Stock Analysis
To read this article on Zacks.com click here.