Echo Global Logistics reported another record quarter for revenue and boosted its guidance for the year as demand for the company’s technology and transportation management services remains robust.
“We have achieved our sixth quarter in a row with record revenue,” CEO Doug Waggoner said in a statement released Oct. 24, “while at the same time improving profitability.”
The Chicago-based firm earned $9.4 million, or 33 cents a share, on gross revenue of $644.8 million in the three months ended Sept. 30, compared with $2.4 million, or 9 cents a share, on gross revenue of $509.5 million in the same period a year ago. Net revenue, which is gross revenue minus the cost of purchased transportation, increased 28.3% to $111.2 million in the third quarter of 2018 from $86.7 million in 2017.
Echo said transactional revenue, which consists primarily of load matching, increased 27.2% to $510.3 million in the third quarter of 2018 from $401.2 million a year ago. Revenue from managed transportation services rose 24.1% to $134.5 million in 2018, from $108.4 million in the same period a year ago.
Looking ahead, Chief Financial Officer Kyle Sauers said the company expects gross revenue in the fourth quarter to be between $570 million and $610 million and is increasing revenue guidance for the year by $20 million to between $2.425 billion and $2.465 billion.