Echo Global Logistics turned a fourth straight quarterly profit in the three-month period ending June 30, posting a net income of $7.7 million compared to a $200,000 net loss in the same 2017 period, according to the company’s most recent financial statements.
The Chicago-based third-party logistics provider posted fully diluted earnings per share of $0.28 for the quarter compared with a $0.01 per share loss the previous year.
On an adjusted basis (excluding changes in contingent consideration, amortization, non-cash interest expense, stock compensation expense and the tax effect of these adjustments) second-quarter EPS stood at $0.46, beating consensus analyst expectations from Zacks Investment Research by $0.08 per share.
Revenues climbed 35 percent year-over-year to $634.8 million for the quarter, exceeding expectations by $26.8 million and setting a fifth-straight quarterly record for the company.
Echo’s full truckload division saw revenues rise 41 percent compared with the first quarter of 2017, while less-than-truckload revenues climbed 23.6 percent.
Revenues in Echo’s managed transportation segment jumped 33.8 percent to $132 million for the quarter.
Increased demand and a lack of available capacity and drivers has caused pricing for both TL and LTL services to skyrocket over the past year, with domestic U.S. TL rates rising for the 15th-consecutive month on a year-over-year basis in June, according to analysts at Cass Information Systems.
For the first six months of the year, Echo recorded a net income of $12.4 million ($0.45 per diluted share) compared with a $3.1 million loss in the first half of 2017 on revenues that jumped 36.8 to $1.2 billion.
“This marks our fifth quarter in a row with record revenue, driven by strong execution from our talented team of people, utilizing our highly differentiated proprietary technology,” Doug Waggoner, chairman and chief executive officer at Echo, said of the results. “In addition to our excellent growth, we are driving improved profitability.”
Earlier this month, Echo acquired the assets of Freight Management Plus Inc., a third-party logistics provider specializing LTL managed transportation. Headquartered in Allison Park, Pa., FMP takes in roughly $15 million in revenues on an annual basis.
Dave Menzel, president and chief operating officer at Echo, said the acquisition gives the company additional LTL sales and management resources, as well as additional customers in the small to midsize shipper market.
“The FMP team strengthens our existing managed transportation talent while expanding our client base,” he said. “FMP is well positioned to benefit from Echo’s technology and multimodal service offerings, which will drive an acceleration of their growth.”
Looking ahead to the remainder of 2018, Echo Chief Financial Officer Kyle Sauers said the company expects revenues in the range of $610 million to $650 million for the third quarter and raised its full-year revenue expectations from between $2.25 billion and $2.40 billion to between $2.375 billion and $2.475 billion.
Echo’s stock rose 1.6 percent on the results, with shares closing at $31.20 on Wednesday compared with $30.70 at close of trading Tuesday, and is now up 11.4 percent from $28 as of the end of 2017.