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Mar 31, 2024

Expeditors Q1 2024 Earnings Report

Expeditors' first quarter earnings decreased due to soft rates and volatile demand.

Key Takeaways

Expeditors International of Washington reported a decrease in first quarter 2024 financial results compared to the same quarter of 2023. EPS decreased 19% to $1.17, net earnings decreased 25% to $169 million, operating income decreased 22% to $215 million, and revenues decreased 15% to $2.2 billion. Airfreight tonnage volume increased 4% and ocean container volume increased 2%.

Diluted EPS decreased 19% to $1.17.

Net earnings attributable to shareholders decreased 25% to $169 million.

Operating income decreased 22% to $215 million.

Revenues decreased 15% to $2.2 billion.

Total Revenue
$2.21B
Previous year: $2.59B
-14.9%
EPS
$1.17
Previous year: $1.45
-19.3%
Airfreight tonnage
4%
Previous year: -6%
-166.7%
Ocean container volume
2%
Previous year: -26%
-107.7%
Gross Profit
$345M
Previous year: $351M
-1.6%
Cash and Equivalents
$1.37B
Previous year: $2.35B
-41.7%
Free Cash Flow
$247M
Total Assets
$4.49B
Previous year: $5.33B
-15.8%

Expeditors

Expeditors

Expeditors Revenue by Segment

Forward Guidance

The company is adjusting to soft rates and volatile demand, focusing on managing costs and investing in strategic growth areas.

Positive Outlook

  • Variable compensation structure aligns with performance.
  • Headcount reduced by 7% through attrition.
  • Investments continue in people, processes, and technology.
  • Strategic efforts to explore new areas for profitable growth are underway.
  • Generated $257 million in cash flow from operations.

Challenges Ahead

  • Industry remains volatile due to global conflicts.
  • Stubborn inflation impacts the business.
  • Fragile economies create uncertainty.
  • Uncertain demand affects performance.
  • Growing air and ocean carrier capacity pressures rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income