Expeditors International of Washington Inc.
) reported first-quarter 2014 adjusted earnings of 42 cents per
share, in line with the Zacks Consensus Estimate. Results, however,
improved 7.7% from the year-ago earnings of 39 cents per share.
Expeditors International Of Washington, Inc -
Quarterly Earnings Per Share | FindTheBest
Total revenue rose 5.6% year over year to $1.491 billion and
edged past the Zacks Consensus Estimate of $1.489 billion. Steady
air and ocean freight volumes along with a good show in the customs
brokerage business boosted the company's performance in the
Gross profit (net revenue) increased 3.7% year over year in the
quarter to $464.6 million. Gross margin (yield) was 31.1%, down
from 31.7% in the year-ago quarter.
In the first quarter, operating expense rose 5.6% to $1.36
billion while operating income improved 5.2% to $135.2 million.
Disciplined execution aided the year-over-year improvement in
Airfreight Services revenues improved 4.3% year over year to
$647.1 million in the first quarter.
Ocean Freight and Ocean Services revenues increased 5.3% year
over year to $469.2 million.
Customs Brokerage and Other Services revenues rose 8.0% year
over year to $375.3 million.
Expeditors' exited the first quarter with cash and cash
equivalents of $1,131.0 million as compared to $1,247.6 million at
the end of 2013. Operating cash flows were $173.9 million versus
$165.2 million in the prior-year quarter.
Zacks Rank and Other Stocks
Another logistics company,
C.H. Robinson Worldwide Inc.
), reported first-quarter results on Apr 29, 2014 after market
close. The company's adjusted earnings of 63 cents were ahead of
the Zacks Consensus Estimate by a penny.
Currently, Expeditors carries a Zacks Rank #3 (Hold). Other
stocks worth considering in this sector include
P.A.M Transportation Services Inc.
Covenant Transportation Group Inc.
). PTSI has a Zacks Rank #1 (Strong Buy) while CVTI carries a Zacks
Rank #2 (Buy).
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 weak consumer and
business demand as well as higher freight rates charged by third
party carriers which might hurt the company's revenues.
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