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Expeditors (EXPD) Q2 Earnings Top, Rise Y/Y on Higher Revenues

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Expeditors International of Washington (EXPD - Free Report) posted mixed results in the second quarter of 2019 with better-than-expected earnings but lower-than-estimated revenues.

Results in Detail

The company’s earnings of 88 cents per share surpassed the Zacks Consensus Estimate of 80 cents. Moreover, the bottom line increased 11% on a year-over-year basis. This year-over-year improvement was owing to higher revenues and a lower effective tax rate. Effective tax rate declined to 23.6% in the reported quarter from 25.8% a year ago.

The earnings beat and its year over year improvement perhaps pleased investors. Consequently, shares of the company were up in early trading.

Although revenues of $2.04 billion fell short of the Zacks Consensus Estimate of $2.05 billion, the same improved 4% from the year-ago figure. While volumes with respect to airfreight tonnage decreased 5%, ocean container volumes inched up 2% on a year-over-year basis. Results were partly affected by lower air freight revenues.

Gross profit (net revenues) increased 3% year over year to $661.69 million. Gross margin (yield) came in at 32.5% compared with 32.8% in the year-ago quarter.

As of Jun 30, 2019, this Zacks Rank #3 (Hold) company repurchased 3.2 million shares at an average price of $73.47 per share. The company exited the quarter with cash and cash equivalents of $1.08 billion compared with $923.74 million at the end of 2018. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Segmental Revenues

Airfreight Services revenues declined 7.5% year over year to $741.58 million in the second quarter. However, Ocean Freight and Ocean Services revenues increased 2.6% to $543.81 million. Also, Customs Brokerage and Other Services revenues rose 19.9% year over year to approximately $750.19 million.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Azul (AZUL - Free Report) , Air Lease Corporation (AL - Free Report) and Copa Holdings (CPA - Free Report) . While Azul and Air Lease will report financial numbers on Aug 8, Copa Holdings will release the same on Aug 7.

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