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Expeditors (EXPD) Q4 Earnings Surpass Estimates, Up Y/Y

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Expeditors International of Washington, Inc. (EXPD - Free Report) performed impressively in the fourth quarter of 2017, reporting better-than-expected earnings and revenues.

The company’s earnings (excluded 21 cents from non-recurring items) of 71 cents per share, surpassed the Zacks Consensus Estimate of 64 cents. Also, the bottom line increased 16.4% on a year-over-year basis. Results were aided by higher revenues.

Revenues came in at $1.9 billion outpacing the Zacks Consensus Estimate of $1.8 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 also increased 6% and 1%, respectively.

Gross profit (net revenues) increased 15% year over year in the final quarter of 2017 to $628.81 million. Gross margin (yield) came in at 33.1% compared with 33.41% in the year-ago quarter.

In the fourth quarter, the company repurchased 2.1 million shares at an average price of $64.52 per share. This Zacks Rank #2 (Buy) company exited 2017 with cash and cash equivalents of $1.05 billion compared with $974.44 million at the end of 2016. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Segmental Revenues

Airfreight Services revenues improved 24% year over year to $854.45 million in the fourth quarter. Ocean Freight and Ocean Services revenues also improved 3.6% year over year to $521.32 million. Customs Brokerage and Other Services revenues were up 16.8 % year over year to approximately $525.61 million.

Upcoming Releases

Investors interested in the broader Zacks Transportation industry are keenly awaiting fourth-quarter earnings reports from key players like Copa Holdings, S.A. (CPA - Free Report) , LATAM Airlines Group S.A. (LTM - Free Report) and Gol Linhas Aéreas Inteligentes S.A. . While Copa is scheduled to release fourth-quarter results on Feb 21, Gol Linhas and LATAM Airlines will unveil their results on Mar 7 and Mar 14, respectively.

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