Expeditors Q2 2020 Earnings Report
Key Takeaways
Expeditors International of Washington, Inc. reported a 27% increase in revenues to $2.6 billion and a 24% increase in diluted net earnings per share (EPS) to $1.09 for the second quarter of 2020, compared to the same quarter of 2019. The results were impacted by COVID-19, which led to lower volumes across all products, but airfreight revenue was greater than anticipated due to high demand for shipping technology and medical equipment.
Diluted EPS increased 24% to $1.09 compared to Q2 2019.
Net earnings attributable to shareholders increased 20% to $184 million compared to Q2 2019.
Revenues increased 27% to $2.6 billion compared to Q2 2019.
Airfreight tonnage volume decreased 10% and ocean container volume decreased 14% compared to Q2 2019.
Expeditors
Expeditors
Expeditors Revenue by Segment
Forward Guidance
Expeditors anticipates the effects of the global pandemic will continue to impact its consolidated financial results and geographical segments unevenly throughout the remainder of 2020.
Positive Outlook
- Focus on increasing operational efficiencies.
- Focus on gaining profitable market share.
- Strong financial position to continue investments.
- Remain a strong, healthy, and unified organization.
- Demonstrated resiliency under trying conditions.
Challenges Ahead
- Uncertain operating environment.
- Effects of COVID-19 led to lower volumes for all products.
- Unable to remember a time when the operating environment has been so uncertain.
- Keep costs in check.
- Not knowing how or when the global economy will recover.
Revenue & Expenses
Visualization of income flow from segment revenue to net income