Expeditors International of Washington (NASDAQ:EXPD) said Tuesday that its third-quarter profit climbed 66%, but investors far from cheered the worse-than-expected revenue, sending shares lower.
The Seattle-based company posted net earnings of $96.1 million, or 44 cents a share, compared with $57.75 million, or 27 cents a share, in the same quarter last year, just ahead of average analyst estimates of 42 cents.
Revenue for the provider of logistics services, including air and ocean freight, distribution management and cargo insurance, was $458.7 million, up 32% from $346.5 million a year ago, widely missing the Street’s view of $1.61 billion.
“Sometimes even the word ‘Wow!’ would be a classical understatement,” Peter J. Rose, the company’s chief executive, said in a statement. “After last year, we had hoped 2010 would be a stronger year, but having operating income be up 66% and 18% over the 2009 and 2008 third quarters, respectively, is way beyond anything we would have dared to predict 12 months ago.”
Sales were driven in its airfreight and ocean freight services, up 64.3% and 80.8%, respectively, to $751.5 million and $599.3 million.
Customs and brokerage services contributed modestly, up 27.5%, $316.7 million.