In a bid to expand its product portfolio, Expeditors International of Washington, Inc. EXPD completed the acquisition of Fleet Logistics’ Digital Platform. The buyout is expected to boost Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
Apart from supporting Koho, the investment is also expected to brace small shippers quote, book, manage and track the LTL shipments online.
Amid the coronavirus crisis, the acquisition is expected to expand business and get further investments that are expected to drive the top line in the upcoming quarters. Further details of the deal were not disclosed.
The decision to acquire Fleet Logistics’ Digital Platform comes at a time when the company is struggling due to coronavirus- induced supply chain disruptions. Notably, revenues in the Airfreight Services declined in first-quarter 2020 due to low volumes. Notably, volumes pertaining to airfreight tonnage and ocean container contracted 7% and 10%, respectively, year over year in the March end quarter. Operating income dropped 15% to $159 million in the first quarter of 2020. Apart from factory shutdowns, commercial flight cancellations and reduced ocean sailings led to double-digit fall in operating income.
Expeditors was also in the news when Kelly Blacker was appointed as the senior vice president for Global Air. Kelly has been into several leadership positions during her 25-year career at Expeditors.
Zacks Rank & Key Picks
Expeditors carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Zacks Transportation sector are Scorpio Tankers Inc. STNG, Teekay Tankers Ltd. TNK and Nordic American Tankers Limited NAT. Scorpio Tankers sports a Zacks Rank #1 (Strong Buy), while Nordic American Tankers and Teekay Tankers carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised upward by 49.4% in the past 60 days.
The Zacks Consensus Estimate for Nordic American Tankers’ current-year earnings has been revised upward by 14.1% in the past 60 days.
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