UTi Worldwide - Still A Name To Play In Freight

For the most part, the transports have all responded well to the bounce in economic activity. Railroads like Union Pacific (NYSE: UNP) and Canadian National (NYSE: CNI), package handlers like UPS  (NYSE: UPS) and truckers like Old Dominion (Nasdaq: ODFL) have all rebounded solidly over the past year or so. Then there is logistics specialist UTi Worldwide (Nasdaq: UTIW). Although air and sea-going traffic have picked up, this stock has not gone along for the ride with the rest of the transports. 

Does this make it an underappreciated bargain, or is there a reason it should be a laggard? Let us investigate.  

The Quarter That Was
There were definitely signs of life in UTIW's quarterly report. Gross revenue rose 37%, though that dropped to 12% net revenue growth due to higher transport costs. Interestingly, air freight and ocean-going revenue were more or less equally strong at the gross revenue level, with 55% and 48% growth, respectively. Logistics and distribution revenue growth was lighter, though, at about 14%, and the company seems to be having a bit of trouble passing on rate increases.  

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