Expeditors International of Washington, Inc. (EXPD - Free Report) performed impressively in the third quarter of 2018, reporting better-than-expected earnings and revenues.
The company’s earnings of 92 cents per share, surpassed the Zacks Consensus Estimate by 14 cents. Also, the bottom line increased more than 39% on a year-over-year basis. Results were aided by higher revenues and a lower effective tax rate.
Effective tax rate in the reported quarter was 21.8%, compared with 36.7% a year ago. Revenues came in at $2.09 billion outpacing the Zacks Consensus Estimate of $2.03 billion. The top line improved 16% 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 1% and 8%, respectively, on a year-over-year basis.
Gross profit (net revenues) increased 10% year over year in the third quarter of 2018 to $661.31 million. Gross margin (yield) came in at 31.6% compared with 33.2% in the year-ago quarter.
In the third quarter, the company repurchased 2 million shares at an average price of $73.47 per share. This Zacks Rank #3 (Hold) company exited the quarter with cash and cash equivalents of $990.61 million compared with $1.05 billion at the end of 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Airfreight Services revenues improved 13.3% year over year to $833.33 million in the third quarter. Ocean Freight and Ocean Services revenues increased 4% to $585.81 million. Customs Brokerage and Other Services revenues increased 33.4 % year over year to approximately $671.8 million.
Investors interested in the broader Transportation sector are keenly awaiting quarterly results from key players like Air Lease Corporation (AL - Free Report) , Hertz Global Holdings, Inc (HTZ - Free Report) and Copa Holdings S.A. (CPA - Free Report) . While Air Lease and Hertz Global Holdings will report third-quarter earnings on Nov 8, Copa Holdings will release the same on Nov 14.
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