Boston, MA 05/09/2014 (wallstreetpr) – Seattle based, Expeditors International of Washington (NASDAQ:EXPD), earnings for the first quarter came in at an impressive 42 cents, in line with estimates representing a 7.7% growth on a year over. This was despite the company facing immense pressure and challenges of harsh weather conditions that ravaged in the quarter. Weaknesses in the economy also hurt business in the quarter.
Ocean and Airfreight Improving
Expeditors International of Washington (NASDAQ:EXPD) maintains that challenging times can only be addressed by disciplined execution of intuitive strategies as demonstrated in the quarter. Despite a slow start in the year, the company has picked up with ocean and airfreight volume consequently improving. Disciplined execution continues to bear fruits in improved operating margins while also adequately handling acceleration in various business segments,
Expeditors International enjoyed double digit operating income growth especially from America, Asia Pacific and Europe markets. Expeditors International’s customs and services under Transcon products grew by 8% demonstrating reliable and strategic growth. During the quarter, Expeditors International repurchased a total of 5.7 million shares bringing total outstanding shares at 197.2 million shares
Expeditors International of Washington (NASDAQ:EXPD) is now conducting a strategic reassessment aimed at pursuing opportunities for profitable market share. The plan is aimed at analyzing the various market positions and organizational structures. Expeditors International is trying to find ways aligning its focus for cost beneficial opportunities.
Financial Highlights
Total revenue for the quarter was up by 5.6% coming in at $1.491 billion slightly toppling estimates of $1.489 billion. This margin was impacted by improved air and ocean freight volumes and improving customer brokerage business. Gross profit for the quarter improved 3.7% to $464.6 million despite operating expenses increasing by 5.6% to $1.36 billion.
Expeditors International exited the first quarter with cash and cash equivalent totaling $1,131 million up from $1,247.6 million as of a close of business in 2013. Operating cash flows also improved to $173.9 million up from $165.2 million. Expeditors International of Washington (NASDAQ:EXPD)’s stock currently commands a “Hold” rating from Zacks Rankings.
