Expeditors International of Washington Inc.
) reported third-quarter 2013 adjusted earnings of 45 cents per
share, missing the Zacks Consensus Estimate of 48 cents. Earnings
increased 7.1% from 42 cents in the prior-year quarter.
Total revenue nudged up 0.2% year over year to $1.54 billion
but lagged the Zacks Consensus Estimate of $1.57 billion.
Shareholders reacted negatively to the news and the stock fell
6.22% in Wednesday trade on Nasdaq.
Gross profit (net revenue) increased 3.6% year over year in
the third quarter to $482.0 million. Gross margin (yield) was
31.4% compared with 30.4% in the prior-year quarter. Operating
income rose 0.8% year over year to $146.3 million.
revenues inched up 0.9% year over year to $628.1 million.
Ocean Freight and Ocean Services
revenues decreased 4.4% year over year to $525.2 million.
Customs Brokerage and Other Services
revenues increased 6.1% year over year to $381.8 million.
Expeditors exited the third quarter with operating cash flows
of $96.3 million compared with $69.2 million in the year-ago
quarter. At the end of the reported quarter, the company had cash
and cash equivalents of $1.31 billion compared with $1.26 billion
at the end of 2012.
Another logistics company,
C.H. Robinson Worldwide Inc.
), reported third-quarter results on Nov 5, 2013 after market
close. The company's adjusted earnings of 69 cents failed to beat
the Zacks Consensus Estimate of 73 cents.
Currently, Expeditors carries a Zacks Rank #3 (Hold). Other
stocks worth considering in this sector include
Old Dominion Freight Line Inc.
Covenant Transportation Group Inc.
). Both these companies have a Zacks Rank #2 (Buy).
For the long term, we believe Expeditors is poised for growth
based on its strategic initiatives, superior business and growing
supply chains. Continued strength in the airfreight business
owing to growing trade between the U.S. and China also bodes
well. Nevertheless, we remain cautious about weak consumer and
business demand as well as delay in manufacturing, which might
hurt the company's revenues. Sluggish economic growth and higher
freight rates charged by third party carriers are the other
near-term headwinds for the company.
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