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Expeditors (EXPD) Beats on Q4 Earnings, Revenues

Zacks Equity Research

Expeditors International of Washington Inc. EXPD performed impressively in the fourth quarter of 2016, reporting better-than-expected earnings and revenues. The company’s earnings of 61 cents per share beat the Zacks Consensus Estimate of 59 cents. Earnings were flat on a year-over-year basis.

Revenues came in at $1,642 million beating the Zacks Consensus Estimate of $1,618 million. Revenues improved 3% from the year-ago figure. Growth was witnessed across all segments.

Gross profit (net revenue) increased 2% year over year in the fourth quarter to $548.6 million. Gross margin (yield) was almost flat at 33.4% in the reported quarter. During the fourth quarter, the company repurchased 1.3 million shares at an average price of $54.31 per share. Expeditors exited 2016 with cash and cash equivalents of $974.4 million compared with $807.8 million at the end of 2015.

Notably, alongside Expeditors other transportation stocks like  Southwest Airlines LUV , Union Pacific Corp. UNP and Alaska Air Group ALK had also reported better-than-expected earnings and revenues in the quarter.

Segmental Revenues

Airfreight Services revenues improved 1.3% year over year to $688.8 million in the fourth quarter. Ocean Freight and Ocean Services revenues increased 2.4% year over year to $503.2 million. Customs Brokerage and Other Services revenues increased 5.9 % year over year to $450 million.

Our Take

We are pleased by the company’s outperformance in the fourth quarter. Furthermore, we believe that the strengthening airfreight business should boost the company’s freight forwarding and customer brokerage business. Also, the company’s efforts to reward shareholders through dividend payments and buybacks seem to be encouraging.

Expeditors International of Washington, Inc. Price, Consensus and EPS Surprise

 

Expeditors International of Washington, Inc. Price, Consensus and EPS Surprise | Expeditors International of Washington, Inc. Quote

Zacks Rank

Currently, Expeditors has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

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