) to hold from buy.
Analyst Gary Yablon says issues of cost structure flexibility appear to have re-emerged. He believes increases in pricing for air freight have not been passed on as much as he would have liked, thus putting yield pressure on EGL, which is not improving the predictability of the company's earnings per share.
Yablon sees revenues above expectations, however, he says EPS is not in excess of his forecast. Yablon thinks EGL's participation in the pick-up of the domestic economy, and Europe and Asia's strengthened economies, is not as strong as he initially believed.
He cut his $0.50 2002 EPS estimate to $0.40, and cut the $1.15 2003 estimate to $0.80.