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Expeditors (EXPD) Q2 Earnings Top, Rise Y/Y on Higher Revenues

Zacks Equity Research

Expeditors International of Washington EXPD posted mixed results in the second quarter of 2019 with better-than-expected earnings but lower-than-estimated revenues.

Results in Detail

The company’s earnings of 88 cents per share surpassed the Zacks Consensus Estimate of 80 cents. Moreover, the bottom line increased 11% on a year-over-year basis. This year-over-year improvement was owing to higher revenues and a lower effective tax rate. Effective tax rate declined to 23.6% in the reported quarter from 25.8% a year ago.

The earnings beat and its year over year improvement perhaps pleased investors. Consequently, shares of the company were up in early trading.

Although revenues of $2.04 billion fell short of the Zacks Consensus Estimate of $2.05 billion, the same improved 4% from the year-ago figure. While volumes with respect to airfreight tonnage decreased 5%, ocean container volumes inched up 2% on a year-over-year basis. Results were partly affected by lower air freight revenues.

Gross profit (net revenues) increased 3% year over year to $661.69 million. Gross margin (yield) came in at 32.5% compared with 32.8% in the year-ago quarter.

As of Jun 30, 2019, this Zacks Rank #3 (Hold) company repurchased 3.2 million shares at an average price of $73.47 per share. The company exited the quarter with cash and cash equivalents of $1.08 billion compared with $923.74 million at the end of 2018. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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. price-consensus-eps-surprise-chart | Expeditors International of Washington, Inc. Quote

Segmental Revenues

Airfreight Services revenues declined 7.5% year over year to $741.58 million in the second quarter. However, Ocean Freight and Ocean Services revenues increased 2.6% to $543.81 million. Also, Customs Brokerage and Other Services revenues rose 19.9% year over year to approximately $750.19 million.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Azul AZUL, Air Lease Corporation AL and Copa Holdings CPA. While Azul and Air Lease will report financial numbers on Aug 8, Copa Holdings will release the same on Aug 7.

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