Expeditors International of Washington Sees Earnings Rise

Despite weaker revenue, Expeditors International of Washington's (NASDAQ: EXPD) profit rose in the most recent quarter. What's behind the company's falling revenue? Let's first dig into the numbers. Then we can look a bit deeper and see what steps you can take.

Earnings and Revenue:
Expeditors International of Washington's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported EPS of 50 cents/share versus the 49 cents/share estimate and revenues of $1.61 billion versus the $1.73 billion estimate. EPS rose 13.6% while revenue declined 3.7% from the same period last year.
Last quarter marked the third in a row of rising net income. Slumping revenue in the last quarter ends Expeditors International of Washington's streak of four consecutive quarters of revenue increases.

Income:
For the year, Expeditors International of Washington reported net income of $1.81/share. The company trumped analyst projections of $1.75 by 3.4%. According to the reported number, the company's income rose 10.9% from last year's levels.

Official Comment:
"It is reassuring to again report record net revenue, operating income and net earnings results, particularly amid the economic challenges some would have us believe define our potential," said Peter J. Rose, Chairman and Chief Executive Officer. "Providing exceptional customer service and market competitive rates to our customers and buying strategically from our quality service providers allows our people to utilize their intellectual capital to optimize efficiency and financial results. This is the reason why we have consistently been able to grow net revenue even when gross revenue doesn't show the same commensurate levels of growth. Maximizing gross revenues to the potential detriment of operating income has never been what's motivated us."

Industry:
Expeditors International of Washington's industry, transportation-services, is currently reporting price/earnings growth of 2.8%.

What to Do Next:
Now you can make a better-informed decision about whether to buy, sell or hold Expeditors International of Washington shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.

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