Expeditors tops profit expectations but revenue falls well short amid continued soft logistics demand
Expeditors International of Washington Inc. (EXPD) reported Tuesday first-quarter profit that topped expectations but revenue that fell well short, as the logistics company's business continued to be hurt by soft demand and "significantly" lower buy and sell rates. The stock was still inactive in premarket trading. Net income fell to $226.0 million, or $1.45 a share, from $346.1 million, or $2.05 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.33. Revenue dropped 44.4% to $2.59 billion, below the FactSet consensus of $2.95 billion. Airfreight services revenue declined 43.4% to $904.9 million, Ocean freight and services revenue sank 64.7% to $697.3 million and customers brokerage revenue slipped 9.1% to $990.4 million. "Following the steep drop in volumes and rates in the fourth quarter, the economic challenges continued to impact all of our businesses during the first quarter," said Chief Executive Officer Jeffrey Musser. "With supply chains largely normalized, average sell rates in air fell ahead of declining buy rates, and tonnage also declined." The stock has rallied 12.1% year to date, while the Dow Jones Transportation Average has gained 5.8% and the Dow Jones Industrial Average has tacked on 2.7%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-02-23 0848ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization