Echo Global’s Net Income Drops 49% in Q3
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Echo Global Logistics Inc., a Chicago-based technology-enabled transportation management service, said profits dropped by about half in the quarter ended Sept. 30.
Echo officials said net income dropped 49% to $4.8 million in the third quarter, compared with $9.4 million in the same quarter of 2018.
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Earnings per share were 18 cents, down 45% from 33 cents.
Revenue decreased 12.9%, to $561.4 million from $644.8 million.
The company’s CEO blamed a downturn in the U.S. freight market while noting Echo’s costs are down.
“Our teams performed well this quarter in what continues to be a softer freight market,” Chairman and CEO Doug Waggoner said. “We again grew truckload contract freight and less-than-truckload volumes, while also reducing our selling, general and administrative costs this quarter, both sequentially and on a year-over-year basis.”
Chief Financial Officer Kyle Sauers said he expects revenue for the fourth quarter to be between $500 million and $540 million.
Full-year 2019 revenue guidance was updated to be in the range of $2.155 billion to $2.195 billion, Sauers said.
Echo ranks No. 38 on the Transport Topics Top 50 list of the largest logistics companies in North America.— Transport Topics
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