logo
Share SHARE
FONT-SIZE Plus   Neg

UTi Worldwide Profit Drops, Yet Tops Estimate - Update

Logistics company UTi Worldwide Inc. (UTIW), Thursday reported a drop in fourth-quarter profit, due mainly to one-time severance and impairment charges. Nonetheless, earnings for the quarter topped Street estimates, while revenue fell short of expectations.

UTi Worldwide's revenue for the quarter edged up 0.7 percent from last year, mainly on higher contract logistics and distribution activity, growth in ocean volumes and higher fuel surcharges. But results were partly hurt by a strong U.S. dollar and lower volumes in air freight.

Excluding purchased transportation costs, net revenue for the quarter was up 0.5 percent, reflecting higher revenue per unit of cargo in freight forwarding.

The company reported fourth-quarter net income of $12.4 million or $0.12 per share, compared to $14.5 million or $0.14 per share last year.

Excluding items, adjusted earnings for the quarter were $20.3 million or $0.20 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter was $1.153 billion, compared to $1.145 billion last year. Analysts expected revenue of $1.20 billion for the quarter.

Looking ahead to the full year, the company said volumes are likely to remain soft for the first half, while a modest pickup is expected in the latter half.

UTIW is trading at $16.70, up $0.70 or 4.38%, on the Nasdaq. In the past year, the company's stock ranged between $11.94 and $24.05.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Embark Veterinary Inc., a startup that makes dog DNA-testing kits for pet owners, vets and breeders, said it has raised $4.5 million in funding from investors and relocated its headquarters to Boston. The company intends to use the new funding to expand its canine genetic testing suite for pet owners, breeders, and veterinarians. Intel Corp. has completely shut down its wearables division about two weeks ago, CNBC reported, citing a person familiar with the matter. The company reportedly intends to focus on augmented reality. According to the CNBC report, Intel laid off about 80 percent of the team that made the Basis fitness watch in November 2016 and has now eliminated the division entirely. The Federal Trade Commission is investigating allegations that Amazon.com Inc. misled consumers about its pricing discounts, Reuters reported, citing a source close to the probe. The FTC probe is reportedly part of the agency's review of Amazon's proposed $13.4 billion deal to buy grocery chain Whole Foods Market Inc.
comments powered by Disqus
Follow RTT