•
Mar 31, 2023

Expeditors Q1 2023 Earnings Report

Expeditors' financial performance declined in Q1 2023 due to soft demand and reduced buy/sell rates, with EPS decreasing by 29% and revenue decreasing by 44%.

Key Takeaways

Expeditors International of Washington reported a decrease in financial results for Q1 2023 compared to the same quarter of 2022. Revenues decreased by 44% to $2.6 billion, net earnings attributable to shareholders decreased by 35% to $226 million, and operating income decreased by 40% to $276 million. The company attributed the decline to soft demand and reduced buy and sell rates.

Diluted net earnings per share decreased 29% to $1.45.

Net earnings attributable to shareholders decreased 35% to $226 million.

Operating income decreased 40% to $276 million.

Revenues decreased 44% to $2.6 billion.

Total Revenue
$2.59B
Previous year: $4.66B
-44.4%
EPS
$1.45
Previous year: $2.05
-29.3%
Airfreight tonnage
-6%
Previous year: -18%
-66.7%
Ocean container volume
-26%
Previous year: -3%
+766.7%
Gross Profit
$351M
Previous year: $545M
-35.7%
Cash and Equivalents
$2.35B
Previous year: $2.14B
+9.9%
Total Assets
$5.33B
Previous year: $7.96B
-33.0%

Expeditors

Expeditors

Expeditors Revenue by Segment

Forward Guidance

The company anticipates continued uncertainty in the global economy and expects to adapt to changes by aligning expenses with revenues and improving efficiency.

Positive Outlook

  • Ability to leverage the strength of carrier relationships.
  • Strength of non-asset-based operating model.
  • Ability to align expenses with revenues.
  • Ability to enhance productivity.
  • Ability to invest in strategic efforts to explore new areas for profitable growth.

Challenges Ahead

  • Uncertain short-term outlook.
  • Pressure on buy and sell rates may continue.
  • Increasingly fragile global economy.
  • Rising inflation and financing costs.
  • Signs of a slowing economy and drop in demand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income