Loading...
•
Mar 31, 2022
Expeditors Q1 2022 Earnings Report
Expeditors' financial performance increased in Q1 2022 despite facing a cyber-attack.
Key Takeaways
Expeditors International of Washington reported a 46% increase in revenues to $4.7 billion and a 23% increase in EPS to $2.05 for Q1 2022, despite an 18% decrease in airfreight tonnage and a 3% decrease in ocean container volume due to a cyber-attack.
Diluted EPS increased 23% to $2.05.
Net earnings attributable to shareholders increased 21% to $346 million.
Operating income increased 20% to $462 million.
Revenues increased 46% to $4.7 billion.
Expeditors
Expeditors
Expeditors Revenue by Segment
Revenue by Segment
Airfreight Services Revenue
CapyFin.comOcean Freight Services Revenue
CapyFin.comCustoms & Other Services Revenue
CapyFin.com Forward Guidance
Expeditors anticipates continued imbalance in air and ocean supply and demand, and cautions that a return to pre-pandemic levels could decrease revenues, expenses, and operating income.
Positive Outlook
- The company's core systems are operational after the cyber-attack.
- Employees found alternative solutions to keep freight moving during the systems shutdown.
- The company believes the bulk of the expenses related to the cyber-attack are behind them.
- The company is implementing system enhancements to prevent future attacks.
- Rates remained elevated due to ongoing supply chain bottlenecks and capacity constraints.
Challenges Ahead
- The cyber-attack limited the company's ability to arrange shipments, manage customs and distribution activities, and perform certain accounting functions.
- The company incurred approximately $40 million in incremental demurrage charges due to the inability to timely process and move shipments.
- The company incurred approximately $20 million in investigation, recovery, and remediation expenses related to the cyber-attack.
- The company may incur additional expenses related to the cyber-attack, including third-party expenses, incremental information services costs, legal fees, or indemnities to customers or business partners.
- The company's revenues, expenses, and operating income are likely to decline from the all-time highs that it experienced in 2021 if demand and rates return to pre-pandemic levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income