Expeditors Earnings: Yet Another Quarter of Profitability

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S&P 500 (NYSE:SPY) component Expeditors International of Washington Inc. (NASDAQ:EXPD) reported its results for the third quarter. Expeditors International of Washington offers global logistics services through an international network supporting the movement and strategic positioning of goods.

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Expeditors International of Washington Inc. Earnings Cheat Sheet

Results: Net income for Expeditors International of Washington Inc. fell to $88.5 million (42 cents per share) vs. $106.6 million (50 cents per share) a year earlier. This is a decline of 17% from the year-earlier quarter.

Revenue: Fell 4.7% to $1.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Expeditors International of Washington Inc. fell short of the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $1.38 billion.

Quoting Management: “Amidst the myriad of challenges we’ve faced this year it was not only satisfying but a very significant achievement to our productivity and cost management objectives to see our operating margin2 once again above 30%,” said Peter J. Rose, Chairman and Chief Executive Officer. “During our 30+ year operating history, we have never had the kinds of convergence of industry challenges, in both our customers and service providers’ industries than we have experienced this year.”

Key Stats:

The company has now seen net income fall for four quarters in a row. In the second quarter, net income fell 11.6% while the figure fell 15.9% in the first quarter and 3.8% in the fourth quarter of the last fiscal year.

The company has missed analyst estiamtes for four quarters in a row. It fell short by 4 cents in the second quarter, by one cent in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

Revenue has dropped for four quarters in a row. Revenue declined 4.8% to $1.5 billion in the second quarter. The figure fell 3.4% in the first quarter from the year earlier and dropped 5.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 48 cents a share to 45 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.76 a share to $1.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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