Expeditors International of Washington Inc.
) quarterly performance continues to lack luster. The company
reported fourth quarter 2013 adjusted earnings of 41 cents per
share, widely missing the Zacks Consensus Estimate of 47 cents.
The results, however, improved 2.5% from the year ago earnings of
40 cents per share.
In 2014, earnings per share increased 7% year over year to
$1.68 but failed to beat the Zacks Consensus Estimate of $1.76.
The stock reacted negatively to the news ending the day with a 7%
Total revenue rose 5.9% year over year to $1.62 billion and
surpassed the Zacks Consensus Estimate of $1.56 billion. Revenues
for the year improved 1.5% year over year to $6.01 billion.
Although air and ocean freight volumes remained steady, ocean
freight pricing was weak, owing to their overcapacity concerns
caused by slow economic recovery.
Gross profit (net revenue) increased 4% year over year in the
fourth quarter to $478.1 million while in 2013 it increased 3% to
$1,882.8 million. Gross margin (yield) was 29.4%, down from 30.1%
in the year-ago quarter. Gross margin for the year was 31.0%, up
from 30.6% in the year-ago period.
In the fourth quarter, operating income improved 4.4% to
$133.6 million while during the year it increased 4.1% to $552.1
Airfreight Services revenues improved 5.9% year over year to
$742.4 million in the fourth quarter.
Ocean Freight and Ocean Services revenues increased 4.9% year
over year to $495.6 million.
Customs Brokerage and Other Services revenues rose 7.0% year
over year to $387.9 million.
Expeditors' exited 2013 with cash and cash equivalents of
$1247.6 million as compared to $1,260.8 million in 2012.
Operating cash flows were $407.5 million compared with $370.1
million in the prior year.
The company paid a semiannual cash dividend of 30 cents per
share on Dec 16, 2013 to shareholders of record as of Dec 2.
Another logistics company,
C.H. Robinson Worldwide Inc.
), reported fourth-quarter results on Feb 4, 2014 after market
close. The company's adjusted earnings of 62 cents failed to beat
the Zacks Consensus Estimate of 68 cents.
Currently, Expeditors carries a Zacks Rank #2 (Buy). 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.
For the long term, we believe Expeditors is poised for growth
based on its strategic initiatives, asset-light business model
and growing supply chains. Continued strength in the airfreight
business owing to growing trade between the U.S. and China also
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 other near-term
headwinds for the company.
CH ROBINSON WWD (CHRW): Free Stock Analysis
COVENANT TRANS (CVTI): Free Stock Analysis
EXPEDITORS INTL (EXPD): Free Stock Analysis
PAM TRANSPORT (PTSI): Get Free Report
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