Expeditors' (EXPD) Q4 Earnings Surpass Estimates, Up Y/Y

Expeditors International of Washington (NASDAQ:EXPD) performed impressively in the fourth quarter of 2018, reporting better-than-expected earnings and revenues.

The company’s earnings of $1.02 per share, surpassed the Zacks Consensus Estimate by 17 cents. Also, the bottom line increased on a year-over-year basis. Results were aided by higher revenues and a lower effective tax rate.

Revenues came in at $2,235.6 million outpacing the Zacks Consensus Estimate of $2,126.5 million. The top line improved 18% from the year-ago figure.

Growth was witnessed across all major divisions of the company. Volumes with respect to airfreight tonnage and ocean container increased 2% and 10%, respectively, on a year-over-year basis.

Gross profit (net revenues) increased 8% year over year in the fourth quarter of 2018 to $681 million. Gross margin (yield) came in at 30.4% compared with 33.1% in the year-ago quarter.

In the fourth quarter, the company repurchased 1.3 million shares at an average price of $71.82 per share. This Zacks Rank #1 (Strong Buy) company exited the year with cash and cash equivalents of $923.74 million compared with $1.05 billion at the end of 2017. You can see the complete list of today’s Zacks #1 Rank stocks here.

Segmental Revenues

Airfreight Services revenues improved 6% year over year to $905.6 million in the fourth quarter. Ocean Freight and Ocean Services revenues increased 18% to $615 million. Customs Brokerage and Other Services revenues increased 36 % year over year to approximately $714.9 million.

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

Annual Results

For full-year 2018, the carrier’s earnings climbed 29% to $3.48 per share. Revenues increased 18% to $8.14 billion. The Zacks Consensus Estimate was of earnings of $3.30 per share on revenues of $8.04 billion. Effective tax rate was 24.3%, well below the 2017 figure of 31.8%. In 2018, the company repurchased 9 million shares at an average price of $71.61 per share.

Upcoming Releases

Investors interested in the Zacks Transportation sector are keenly awaiting quarterly results from key players like Air Lease Corporation (NYSE:AL) , Hertz Global Holdings (NYSE:HTZ) and GOL Linhas Aéreas Inteligentes (NYSE:GOL) . While Air Lease and Hertz Global are scheduled to report fourth-quarter earnings on Feb 21 and Feb 25, respectively, GOL Linhas will release the same on Feb 28.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>