UTi Worldwide Posts Mixed Results (UTIW)

UTi Worldwide Inc. UTIW released financial results on Thursday morning that beat Wall Street earnings estimates, while missing revenue expectations. UTi Worldwide Inc announced that its 3rd quarter net income rose to $26.4 million, or 26 cents per share, up from $18 million, or 18 cents per share, a year earlier. The company's revenues climbed 24% to $1.2 billion, up from $967.2 billion a year earlier. According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 25 cents per share, on revenue of $1.22 billion. Chief executive officer Eric W. Kirchner said, "Our improved third quarter performance was the result of higher volumes and greater operating efficiency, partially offset by lower yields. Volume growth, while still ahead of last year, moderated in the third quarter. Airfreight volumes remained robust primarily because of tight inventory levels, but comparisons have become more challenging. Ocean freight peaked in August, and then weakened in each subsequent month. Airfreight tonnage in the fourth quarter is expected to be at levels similar to last year, while ocean freight TEUs may be lower due to unseasonably high levels last year. Yield pressure also showed signs of moderation in the third quarter. Carrier spot rates were slightly more favorable as a result of declining demand and available capacity, and we continued to adjust our pricing in response to market conditions. While this is encouraging, the rate of yield improvement may not be sufficient to offset anticipated volume weakness in the fourth quarter." UTi Worldwide Inc. (UTIW) finished the previous trading day at $19.93 per share. The consensus price target of analysts covering the company's stock is $19.72 per share. Read more from Benzinga's Company news.