EXPD In Line with Expectation – Analyst Blog

Expeditors International of Washington Inc’s (EXPD) first quarter net income of 28 cents per share was at par with the Zacks Consensus Estimate but a penny higher than the year-ago earnings of 27 cents. Net income attributable to shareholders grew by 3.2% year-over-year to $61.2 million.

 

Total revenue for the quarter was $1.2 billion, up 31.6% year over year, reflecting substantial growth across business segments and geographical presence. While operating income increased 9.8% year over year to $100.5 million, this was partially offset by operating expenses that also grew by 34% year over year to $1.1 billion.

 

 

Airfreight Services’ net revenue in the quarter increased 49.4% year over year to $559.4 million. Despite the capacity challenges in the airfreight markets, the company reported airfreight tonnages to be up 40% for the reported quarter, which was an encouraging growth indicator.

 

Ocean Freight and Ocean Services net revenue increased 19.6% year-over-year to $381.2 million. Quarterly ocean freight container counts were 15% higher on a year-over-year basis.

 

Customs Brokerage and Other Services net revenues for the quarter increased 18.6% year-over-year to $260.5 million.

 

Geographically, revenues in North America, Latin America, Asia, Europe and Africa, Middle East and India and Australasia increased 20%, 3%, 44%, 22%, 10% and 42%, respectively, in the reported quarter.

 

 

Expeditors’ balance sheet remains solid with no debt and $1.041 billion in cash at the end of March 31, 2010, up from $926 million as of December 31, 2009. The company’s capital expenditure totaled $7.6 million compared with $8.7 million in the year-ago quarter.

 

The company appears to be benefiting from the slow but steady global economic recovery. This is reflected by fair yields and operating income growth based on improvements witnessed in capacity and pricing.