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Expeditors Beats on Earnings & Revenues in Q4, Shares Up - Analyst Blog

Expeditors International of Washington Inc. 's ( EXPD ) fourth-quarter 2014 earnings of 51 cents per share beat the Zacks Consensus Estimate by 2 cents. Higher-than-expected revenues led to the earnings beat. Moreover, earnings were 24% higher than the year-ago figure. The earnings beat pleased investors. Consequently, the stock gained in early trading.

Expeditors International of Washington Inc. - Earnings Surprise | FindTheBest

Total revenue of $1.77 billion was marginally ahead of the Zacks Consensus Estimate of $1.75 billion. Strong air freight and ocean freight revenues boosted the top line in the final quarter of 2014.

Gross profit (net revenue) increased 8.5% year over year in the fourth quarter to $518.9 million. Gross margin (yield) was 29.3%, flat year-over-year.

Revenue Segments

Airfreight Services revenues improved 5.1% year over year to $780 million in the fourth quarter. Ocean Freight and Ocean Services revenues increased 14.7% year over year to $568.3 million. Customs Brokerage and Other Services revenues rose 8.4% year over year to $420.6 million.

Liquidity

Expeditors exited 2014 with cash and cash equivalents of $927.1 million as compared to $1,247.6 million in 2013. Operating cash flows were $395 million for the year ended Dec 31, 2014 compared with $407.5 million at the end of 2013.

Dividend

The company paid a semi-annual cash dividend of 32 cents per share on Dec 15, 2014 to shareholders of record as of Dec 1.

Annual Results

For full-year 2014, the logistics company reported earnings of $1.92 per share, up 14% from 2013. Total revenue for the year climbed 8% to $6.57 billion. Gross profit increased 5.2% in 2014 to $1,981.4 million. Gross margin for the year was 30.2%, down from 31% in 2013.

Zacks Rank

Currently, Expeditors carries a Zacks Rank #2 (Buy). Some other stocks also worth considering in the broader transportation space include Celadon Group Inc. ( CGI ), Covenant Transportation Group Inc. ( CVTI ) and Knight Transportation Inc. ( KNX ). All the three stocks carry a Zacks Rank #1 (Strong Buy).

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EXPEDITORS INTL (EXPD): Free Stock Analysis Report

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COVENANT TRANS (CVTI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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