Time New York: Fri 20 Jul 19:46 pm  |  Save 15% on H&R Block Online


Expeditors (EXPD) Meets Q2 Earnings Estimates, Revenues Beat


Expeditors International of Washington Inc. EXPD reported mixed results in the second quarter of 2017 with earnings per share meeting the Zacks Consensus Estimate while revenues surpassed the same.

This transportation company posted earnings (on an adjusted basis) of 60 cents per share, which were in line with the Zacks Consensus Estimate. However, the bottom line declined 4.76% on a year-over-year basis due to higher costs.

This lackluster bottom-line performance of the Zacks Rank #4 (Sell) stock disappointed investors. Consequently, it lost value in early trading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revenues of $1,672 million topped the Zacks Consensus Estimate of $1,633 million. In fact, the top line improved 13% from the year-ago figure and increased at all three primary divisions of the company. Volumes with respect to airfreight tonnage and ocean container increased 9% and 4%, respectively, in the reported quarter.

Gross profit (net revenue) increased 2% year over year in the reported quarter to $563.6 million. But gross margin (yield) declined to 33.7%. Based in Seattle, WA, this company exited the quarter with cash and cash equivalents of $1.11 billion compared with $974.4 million at the end of 2016. Additionally, it repurchased 1.9 million shares at an average price of $49.47 per share.

Segmental Revenues

Airfreight Services revenues improved 15.4% year over year to $671.9 million in the second quarter. Ocean Freight and Ocean Services revenues increased 13.7% year over year to $528.6 million. Customs Brokerage and Other Services revenues increased 10.1 % year over year to approximately $471.8 million.

Upcoming Releases

Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of GOL Linhas GOL, Copa Holdings CPA and LATAM Airlines Group S.A. LTM. While Copa and GOL are scheduled to release their second-quarter results on Aug 9, LATAM Airlines will unveil its results on Aug 17.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.