We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Expeditors International of Washington’s (EXPD - Free Report) first-quarter 2020 earnings of 71 cents per share surpassed the Zacks Consensus Estimate by 3 cents. The earnings beat in such challenging times seems to have pleased investors. As a result, the stock gained in early trading. However, the bottom line decreased 11.3% on a year-over-year basis.
Further, total revenues of $1,901.9 marginally missed the Zacks Consensus Estimate of $1,902.7 and also declined 5.9% year over year. The top line was hurt by supply-chain disruptions due to the coronavirus pandemic. The extended closure of factories in China due to the virus outbreak dented freight volumes in the March quarter.
Notably, volumes pertaining to airfreight tonnage and ocean container contracted 7% and 10%, respectively, year over year. Operating income dropped 15% to $159 million in the first quarter of 2020. Factory shutdowns apart, commercial flight cancellations and reduced ocean sailings resulted in the double-digit fall in operating income.
During the first quarter, this Zacks Rank #3 (Hold) company repurchased 4 million shares at an average price of $70.81 per share. The company exited the quarter with cash and cash equivalents of $1.11 billion compared with $1.23 million at the end of 2019.
Airfreight Services revenues slid 0.8% year over year to $709 million in the first quarter. Ocean Freight and Ocean Services revenues deteriorated 13.2% to $493.4 million. Moreover, Customs Brokerage and Other Services revenues decreased 5% year over year to $699.4 million.
Performance of Other Transportation Stocks
Expeditors apart, other companies having already reported within the broader Transportation sector include Delta Air Lines (DAL - Free Report) , CSX Corporation (CSX - Free Report) and Union Pacific Corporation (UNP - Free Report) .
Delta incurred a loss of 51 cents (excluding 33 cents from non-recurring items) in the March quarter, narrower than the Zacks Consensus Estimate of a loss of 72 cents per share. In the year-ago period, the company reported earnings (on an adjusted basis) of 96 cents per share. Total revenues of $8,592 million lagged the Zacks Consensus Estimate of $9,637.5 million and also declined 18% year over year.
CSX delivered first-quarter 2020 earnings of $1 per share, beating the Zacks Consensus Estimate of 92 cents. However, the bottom line slipped approximately 2% year over year on a 5% dip in revenues. Moreover, total revenues of $2,855 million missed the consensus estimate of $2,877 million due to lower coal and other revenues.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Operating revenues of $5,229 million also beat the consensus mark of $5,105.9 million. While the bottom line improved 11.4% on a year-over-year basis, primarily owing to low costs, the top line dipped 3% due to sluggish freight revenues (down 3%).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Shutterstock
Expeditors (EXPD) Q1 Earnings Beat Estimates, Decline Y/Y
Expeditors International of Washington’s (EXPD - Free Report) first-quarter 2020 earnings of 71 cents per share surpassed the Zacks Consensus Estimate by 3 cents. The earnings beat in such challenging times seems to have pleased investors. As a result, the stock gained in early trading. However, the bottom line decreased 11.3% on a year-over-year basis.
Further, total revenues of $1,901.9 marginally missed the Zacks Consensus Estimate of $1,902.7 and also declined 5.9% year over year. The top line was hurt by supply-chain disruptions due to the coronavirus pandemic. The extended closure of factories in China due to the virus outbreak dented freight volumes in the March quarter.
Notably, volumes pertaining to airfreight tonnage and ocean container contracted 7% and 10%, respectively, year over year. Operating income dropped 15% to $159 million in the first quarter of 2020. Factory shutdowns apart, commercial flight cancellations and reduced ocean sailings resulted in the double-digit fall in operating income.
During the first quarter, this Zacks Rank #3 (Hold) company repurchased 4 million shares at an average price of $70.81 per share. The company exited the quarter with cash and cash equivalents of $1.11 billion compared with $1.23 million at the end of 2019.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Revenues
Airfreight Services revenues slid 0.8% year over year to $709 million in the first quarter. Ocean Freight and Ocean Services revenues deteriorated 13.2% to $493.4 million. Moreover, Customs Brokerage and Other Services revenues decreased 5% year over year to $699.4 million.
Performance of Other Transportation Stocks
Expeditors apart, other companies having already reported within the broader Transportation sector include Delta Air Lines (DAL - Free Report) , CSX Corporation (CSX - Free Report) and Union Pacific Corporation (UNP - Free Report) .
Delta incurred a loss of 51 cents (excluding 33 cents from non-recurring items) in the March quarter, narrower than the Zacks Consensus Estimate of a loss of 72 cents per share. In the year-ago period, the company reported earnings (on an adjusted basis) of 96 cents per share. Total revenues of $8,592 million lagged the Zacks Consensus Estimate of $9,637.5 million and also declined 18% year over year.
CSX delivered first-quarter 2020 earnings of $1 per share, beating the Zacks Consensus Estimate of 92 cents. However, the bottom line slipped approximately 2% year over year on a 5% dip in revenues. Moreover, total revenues of $2,855 million missed the consensus estimate of $2,877 million due to lower coal and other revenues.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Operating revenues of $5,229 million also beat the consensus mark of $5,105.9 million. While the bottom line improved 11.4% on a year-over-year basis, primarily owing to low costs, the top line dipped 3% due to sluggish freight revenues (down 3%).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>