Feb 18 (Reuters) - Global freight forwarder Expeditors International of Washington EXPD.N reported fourth-quarter profit and revenue above Wall Street estimates on Tuesday, as strong demand for its ocean and air freight services helped with rate increases.
Shares of the company were up 1.4% in morning trade.
Red Sea disruptions and labor actions at U.S. ports along with threats of potential new tariffs prompted shippers to front-load essential goods to mitigate any disruptions, benefiting freight forwarders like Expeditors.
Additionally, the company said that strong demand from Asia, along with increased e-commerce business and higher demand for technology products, further constrained its air capacity and pushed rates higher.
The company continues to have limited visibility going forward as "it is extremely difficult to predict the impact to global air supply and demand that may result from actions such as the anticipated U.S. elimination of certain de minimis exemptions," CEO Jeffrey Musser said.
The Bellevue, Washington-based company reported a quarterly per share profit of $1.68. Analysts on average expected it to post a profit of $1.40, according to data compiled by LSEG.
Its revenue increased 30% to $2.95 billion for the quarter ended December 31, above estimates of $2.81 billion.
Revenue at the company's air freight segment rose to $1.06 billion from $866.1 million last year, while its ocean freight segment reported a revenue of $908.4 million, compared with $511.9 million a year earlier.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Vijay Kishore)
((Abhinav.Parmar@thomsonreuters.com;))
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