Expeditors Int'l (EXPD) Tops Q4 EPS by 1c

Expeditors Int'l (NASDAQ: EXPD) reported Q4 EPS of $0.61, $0.01 better than the analyst estimate of $0.60. Revenue for the quarter came in at $1.64 billion versus the consensus estimate of $1.63 billion.

• Diluted Net Earnings Attributable to Shareholders per share (EPS1) remained constant at $0.61
• Net Earnings Attributable to Shareholders decreased 3% to $111 million
• Operating Income decreased 3% to $172 million
• Revenues increased 3% to $1.64 billion
• Net Revenues2 increased 2% to $549 million
• Airfreight tonnage and ocean container volumes both increased 12% to record levels

“Through the hard work and dedication of our people, we shipped the most freight in our Company’s history and gained market share in the fourth quarter, as we did throughout 2016,” said Jeffrey S. Musser, President and Chief Executive Officer. “We are especially pleased with the growth in our customs brokerage and other services, particularly in the U.S. through our Transcon business. Rates remained highly unpredictable in the quarter, as they were throughout much of 2016, again putting unusual pressure on our margins. While experience has shown us that margin pressure is cyclical, in light of such truly unprecedented rate volatility, we are improving processes to better address the rapid changes in buy and sell rates, which we expect to continue.

“We continue to execute our strategic initiatives and remain focused on expanding our business and exploring opportunities for growth. At the same time, given the uncertainties for global trade, we are also working hard to expand our presence in markets that are less uncertain. In addition, we recently appointed one of our most senior executives, Phil Coughlin, to the new position of Chief Strategy Officer to form a team that will explore additional opportunities for growth. As a market leader, we recognize that in order to maintain our leadership position and remain at the forefront of innovation, we must continuously invest in people, processes and technology. We believe the additional investments we’re making will enhance our market position.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We shipped record volumes and again maintained operating income as a percentage of net revenues - a key measure of operating efficiency - above 30%. We believe the additional investments we have made in people and technology are delivering enhanced growth and market share. In 2017, we will continue to make additional important investments in technology and in our strategic efforts to explore new areas for profitable growth.”

For earnings history and earnings-related data on Expeditors Int'l (EXPD) click here.

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• Accenture downgraded by TD Cowen on AI concerns
• NVE Corporation names new CEO and expands board to seven members