Echo Global Logistics posted record revenue and higher profits in the fourth quarter of 2018 as strong freight demand boosted demand for freight brokerage services and more shippers outsourced freight management activities.
The Chicago-based company said net income was $6.9 million, or 25 cents a share, in the three months ended Dec. 31, compared with $13.3 million, or 48 cents a share, in the same period the year prior. Results in 2017 included a one-time benefit of $8.9 million from the Tax Cuts and Jobs Act. Income from operations was $13.7 million in the fourth quarter of 2018 versus $10.1 million in 2017. Net revenue increased 6.4% to $102.4 million from $96.2 million and total revenue also increased 6.4% to $583 million from $547.7 million.
“In a fast-changing freight environment, we demonstrated the flexibility of our model and the ability to gain operating leverage while bringing great value to our shippers and carriers,” CEO Doug Waggoner said in a statement released Feb. 6.
Transactional revenue in the fourth quarter increased 3.7% to $449.3 million from $433.2 million, while managed transportation revenue surged 13.7% to $133.6 million from $114.5 million.
For the full year, Echo reported net income of $28.7 million, or $1.03 a share, in 2018 compared with $12.6 million, or 45 cents a share, in 2017. Net revenue grew 24% to $420.4 million from $339 million and total revenue climbed 25.9% to $2.44 billion from $1.94 billion.
Looking ahead, Kyle Sauers, chief financial officer of Echo, said he expects first-quarter revenue to be between $530 million and $570 million and full-year revenue to be in the range of $2.35 billion to $2.55 billion.