Echo Global Logistics beats earnings estimates and raises guidance

Echo moves its customers’ freight in two ways: through its Transactional or freight brokerage business and through its Managed Transportation division. Transactional revenue grew 80.7% year-over-year to $716.9 million, while Managed Transportation grew 84.6% to $217.7 million. 

While C.H. Robinson pursued less-than-truckload (LTL) volume growth far more aggressively than truckload, Echo grew volumes in both modes at about the same pace. Truckload volumes grew 26.6% year-over-year and revenue grew 95.1% to $687 million. LTL volumes grew 27.4% year-over-year and revenue grew 53.7% to $217.6 million. 

A little more than half, or 52%, of Echo’s truckload freight came from the spot market, which helped to contribute to a 54% increase in revenue per truckload shipment. 

Total headcount grew by 11.7%; Echo’s sales force of brokers and agents grew by 10.5%. In other words, Echo grew volumes more than twice as fast as headcount. 

“Given the strong start to the first half of the year and solid market fundamentals, we are expecting revenue for the third quarter to be between $910 million and $940 million, representing 34% year over year growth at the midpoint,” said Pete Rogers, chief financial officer. 

“In addition, we are raising our full year revenue guidance to be between $3.45 billion – $3.55 billion, representing 39% year over year growth and an 8% increase from our most recent guidance.”

Freight volumes are still growing, although year-over-year comparisons are getting tougher. Echo indicated that in July, its truckload shipments per day were up 16% year-over-year, while LTL shipments were up 18%.