Expeditors International and CH Robinson Under Review: Freight Stocks Up on Improving Economy
LONDON, February 11, 2013 /PRNewswire/ --
Freight broking companies are looking ahead for a bright future on account of improved economic conditions. Subdued economic environment and curtailed activities in various industries put a strain on third party logistic companies like Expeditors International of Washington Inc. (NASDAQ: EXPD) which missed estimates for its quarterly results. The impact of tough economic times is visible on the performance of industry leaders like CH Robinson Worldwide Inc. (NASDAQ: CHRW). However, the industry leaders have offered good returns to their investors in the form of consistent dividends and the quantum is expected to increase as and when the economy picks up. StockCall has released free charting and technical research on these two aforementioned companies. Register to read this reports at
CH Robinson Disappoints with Quarterly Numbers
CH Robinson Worldwide Inc. stock tumbled after posting disappointing results. The stock had a good run prior to result announcement but pulled back as the company posted its adjusted EPS at 68 cents per share, lagging behind consensus estimate of 70 cents per share in earnings. However, it reported marginal increase in its revenue, but again its own management sounded a little cautious and recognized challenge due to tough market conditions. The company's margins are also under pressure. Sign up for the free report on CH Robinson Worldwide at
The company is one of the most prominent logistic solutions providers in the world. Despite its latest disappointing results, the company is still in a good shape as it has very low debt burden. It also boasts of a dividend yield of 2.34 percent. Since its dividend payout ratio is near 50 percent, the dividend stream is expected to remain safe into the future. It has also increased dividend continuously for 16 years. At the very same time, the company management is not very keen on buying back its shares and would prefer to deploy the resources to make acquisitions and grow externally. However, at Price/Earnings ratio of 21.72, the stock is trading above industry average.
CH Robinson recently acquired Phoenix International, which mainly engages in maritime international transportation. The acquisition offers obvious benefit of letting the company get foothold into new areas.
Expeditors to Grow International Business
Expeditors International of Washington Inc. has been missing consensus estimates but the company offers regular dividend. The stock is a good candidate for long-term investment. While the company had a rather subdued 2012, it is expected to pick up during 2013. The company is also reporting growth in its revenue and EPS trend. Expeditors International free technical report can be accessed by signing up at
Expeditors International of Washington is likely to perform better this year as its client's firms increase their activities in response to improvement in general economic environment. It is expected that the company will have better volume as well as better rates this year, easing the pressure. Its net revenue for the fiscal third quarter was down 6 percent while its income tumbled 17 percent.
The company is in the third party logistics segment and hence is a non-asset company. This means that the company does not run its own fleet rather buys the transportation solutions from truckers, airlines and so on. This also means that they have less control over the price to be charged. Expeditors International of Washington is mainly invested in international operations and is expected to benefit from the overall improvement in global economy.
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