The global logistics company thrived from a lower effective tax rate and higher ocean and airfreight volumes.
Expeditors International of Washington Inc. fared better than expected during the first quarter of 2018 as it benefited from a lower effective tax rate and higher ocean and airfreight volumes.
The Seattle-based global logistics company’s net earnings for the quarter leapt 45.6 percent year-over-year to $136.2 million, according to its latest financial statements.
Diluted EPS for the quarter surpassed the Zacks consensus estimate of 64 cents by a long shot, coming in at 76 cents.
Expeditor’s revenues of $1.9 billion for the quarter, which rose 20 percent year-over-year, also surpassed the Zacks consensus estimate of $1.7 billion amid ocean container volumes and airfreight tonnage volumes both rising 5 percent.
The effective tax rate for the quarter was 31.1 percent, down from 37.3 percent for last year’s first quarter, according to Expeditors Senior Vice President and Chief Financial Officer Bradley Powell. Going forward, he said that the impact of the 2017 Tax Act on the company’s effective tax rate will largely depend on the mix of pretax earnings that are generated in its U.S. and foreign operations, as well as further interpretation of and guidance to be issued on the new tax law.
During the quarter, the company repurchased 2.7 million shares of common stock at an average price of $64.76 per share.
On Tuesday, its board of directors declared a semi-annual cash dividend of $0.45 per share, payable on June 15 to shareholders of record as of June 1.
Expeditors speeds past analyst expectations in Q1
