Expeditors shares fall on weak results
May 7 (Reuters) - Shares of Expeditors International of Washington Inc (EXPD.O) were down as much 9 percent a day after the logistics service provider posted lower-than-expected quarterly results.
Robert W Baird analyst Jon Langenfeld said the quarterly results were hurt by "unprecedented" volume pressure in the freight market that could not be offset by strong yields at the company.
Langenfeld, who has a "neutral" rating on the stock, said the company experienced an estimated 25 percent volume decline in the airfreight segment and 15 to 20 percent drop in the ocean freight segment.
"The international freight demand environment is abysmal with no expectations for improvement in 2009," Langenfeld wrote in a note.
He also said strong yield benefit that the company has experienced in recent quarters will wane in 2009.
On Wednesday, Expeditors posted a quarterly profit of 27 cents a share, below Wall Street estimates of 30 cents, and a 30 percent drop in total revenue.
Shares of the company were down $2.74 at $34.39 Thursday morning on Nasdaq. They touched a low of $33.71 earlier in the session.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by Jarshad Kakkrakandy)
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