Tuesday, Expeditors International of Washington, Inc. (EXPD), a logistics company, reported 9% rise in its second-quarter profit, helped by 16% growth in revenues.
The Seattle, Washington-based company posted second-quarter net income of $71.25 million from $65.49 million last year. Earnings per share rose 7% to $0.32 from $0.30 in the previous year. On average, 9 analysts polled by First Call/Thomson Financial expected the company to earn $0.34 per share.
Total revenues grew 16% to $1.45 billion from $1.26 billion in the prior year quarter. Six Wall Street analysts had consensus revenue estimate of $1.45 billion.
Net revenues for the quarter were up 12% at $397.32 million from $354.57 million in the prior year. Same store net revenues for the quarter increased 12% year over year.
Operating income were $112.97 million, up from $101.74 million in the same quarter of 2007. Operating expenses totaled $1.34 billion, an increase from $1.16 billion in the second quarter of 2007.
Among the operating expenses, airfreight consolidation expense rose to $517.68 million from $437.45 million a year-ago and ocean freight consolidation expense increased to $419.77 million from $364.92 million last year. Meanwhile, operating expenses related to customs brokerage and other services were $215.53 million, up from $197.39 million in the prior year quarter.
Commenting on the results, Peter Rose, CEO, said, "This was fundamentally a very strong and a very sound quarter. We had good solid revenue and net revenue growth of 16% and 12%, respectively, and we did an excellent job of managing those costs over which we had control."
Among the segments, airfreight business generated higher revenue of $658.88 million compared to $564.47 million in the prior year quarter. Ocean freight and ocean services generated revenue of $516.47 million, up from $450.43 million in the corresponding quarter a year-ago. Customs brokerage and other services had revenue of $278.90 million for the quarter, up from $243.72 million in the same quarter last year.
For the first six months in 2008, net earnings rose 10% to $137.72 million from $124.78 million in the first six months of 2007. Diluted net earnings per share for the first two quarters of 2008 were $0.62, which was 11% higher than $0.56 for the same period of 2007. Total revenues for the period were $2.76 billion, up 16% from $2.38 billion in the same period of 2007, Net revenues for the six months increased 12% to $771.65 million from $688.71 million in the prior year period.
As of June 30, 2008, cash and cash equivalents totaled $703.49 million, compared to 574.60 million as of December 31, 2007.
Expeditors stock is up 71 cents or 2.03% and currently trading at $35.71. In the past 52-weeks, the stock has between $33.71 and $54.46.
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