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Jun 30, 2021

Expeditors Q2 2021 Earnings Report

Expeditors' Q2 2021 earnings significantly increased due to unprecedented volumes and elevated buy/sell rates.

Key Takeaways

Expeditors International of Washington reported a strong second quarter in 2021, with a 69% increase in EPS to $1.84, a 72% increase in net earnings to $316 million, and a 66% increase in operating income to $411 million. Revenues increased by 50% to $3.6 billion, driven by a 37% increase in airfreight tonnage and a 34% increase in ocean container volume.

Diluted EPS increased 69% to $1.84.

Net earnings attributable to shareholders increased 72% to $316 million.

Operating income increased 66% to $411 million.

Revenues increased 50% to $3.6 billion.

Total Revenue
$3.61B
Previous year: $2.58B
+39.8%
EPS
$1.84
Previous year: $1.09
+68.8%
Airfreight tonnage
37%
Previous year: -10%
-470.0%
Ocean container volume
34%
Previous year: -14%
-342.9%
Gross Profit
$471M
Previous year: $299M
+57.6%
Cash and Equivalents
$1.67B
Previous year: $1.18B
+41.8%
Total Assets
$5.95B
Previous year: $3.81B
+56.2%

Expeditors

Expeditors

Expeditors Revenue by Segment

Forward Guidance

Expeditors anticipates no meaningful improvements to the operating environment for the remainder of the year, with demand continuing to outstrip capacity in both air and ocean markets, keeping buy/sell rates unsettled for at least the duration of 2021.

Positive Outlook

  • The company will continue to do all that it can to help its customers during such difficult times.
  • The company remains optimistic that conditions will improve over time.
  • The company will continue to make important investments in people.
  • The company will continue to invest in processes and technology.
  • The company will invest in strategic efforts to explore new areas for profitable growth.

Challenges Ahead

  • The global infrastructure for moving freight seems nearly stretched to its limit.
  • Robust demand is bumping up against capacity constraints in the air and ocean markets.
  • There are limited warehouse space and staffing constraints.
  • There is port congestion and equipment dislocations.
  • There are driver shortages.

Revenue & Expenses

Visualization of income flow from segment revenue to net income