UTi Worldwide Income Surges, Beats Estimates (UTIW)

UTi Worldwide Inc. UTIW announced on Thursday before the market opened that it beat consensus Wall Street estimates. UTi Worldwide Inc reported that its fiscal 2011 2nd quarter net income rose to $18.9 million, or 19 cents per share, up from $11.8 million, or 12 cents per share, a year earlier. Revenues climbed 37% to $1.15 billion, up from $840.5 million a year earlier. According to a survey of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 17 cents per share, on revenue of $1.08 billion. UTi Worldwide Inc. (UTIW) closed Wednesday trading at $14.34 per share. Analysts covering the company's stock give it a consensus price target of $18.00 per share. Chief executive officer Eric W. Kirchner said, "Our improved results were primarily driven by strong volumes and better operating margins. Airfreight and ocean freight volumes continued to grow faster than the market and were higher than volumes recorded in the second quarter two years ago, prior to the financial crisis. Results remain tempered by yield pressure due to continued high transportation rates, and we expect these rates to remain volatile on many trade lanes for the rest of the year. We are also expecting volume growth to moderate during the second half of the year due to a slowing global economy and more difficult comparisons to the prior year." Read more from Benzinga's Company news.