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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
0.92
Previous year: -6
-115.3%
Ocean container volume
0.93
Previous year: -26
-103.6%
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

Expeditors Revenue by Geographic Location

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