However, the Seattle-based global logistics company’s net earnings attributable to shareholders slipped 3 percent year-over-year during the quarter to $110.6 million.
Expeditors International of Washington, Inc. saw net earnings attributable to shareholders slip 3 percent year-over-year in the fourth quarter of 2016 to $110.6 million, according to the Seattle-based global logistics company’s latest financial statements.
Earnings per share (EPS) totaled $0.61 for the quarter, beating the Zacks consensus estimate of $0.59 cents, but falling short of Stifel’s estimate of $0.62.
Meanwhile, revenues for the quarter ticked up 3 percent year-over-year to $1.64 billion.
Airfreight tonnage and ocean container volumes both increased 12 percent year-over-year for the quarter. “We shipped the most freight in our company’s history and gained market share in the fourth quarter, as we did throughout 2016,” Expeditors President and CEO Jeffrey S. Musser said.
However, for the first quarter of 2016, airfreight tonnage was down 9 percent from the corresponding 2015 period, while ocean container volumes were 3 percent lower. Stifel said, “At the beginning the year, freight was hamstrung by industrial recession, uncertainty, and inventory overhang (and difficult comps).”
At the close of 2016, Expeditors had a total of 16,089 employees, a 4.5 percent increase from the close of 2015.
For the full year of 2016, Expeditors recorded net earnings attributable to shareholders of $430.8 million on revenues of $6.10 billion, year-over-year declines of 5.8 percent and 7.8 percent, respectively.
“2016 proved challenging for freight forwarders, with a soft market and volatile rates pressuring net revenue margins,” Stifel said.
Expeditors Senior Vice President and Chief Financial Officer Bradley S. Powell said, “In 2017, we will continue to make additional important investments in technology and in our strategic efforts to explore new areas for profitable growth.”
Stifel said that with a modestly improving volume and yield outlook for Expeditors, it is increasing its 2017 and 2018 EPS estimates from $2.58 and $2.74 to $2.60 and $2.80, respectively.
Expeditors increases volumes, revenues in Q4 2016
