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Jun 30, 2022
Expeditors Q2 2022 Earnings Report
Expeditors' financial performance for Q2 2022 was announced, marked by revenue growth and earnings per share increase despite volume decreases in air and ocean freight.
Key Takeaways
Expeditors International of Washington, Inc. reported a strong second quarter in 2022, with a 28% increase in revenues to $4.6 billion and a 23% increase in diluted EPS to $2.27, even with decreases in airfreight and ocean container volumes. The company faced challenges including recovery from a cyber-attack and volume drops in China due to lockdowns, but highlighted the strength of its employees and commitment to customers.
Diluted EPS increased 23% to $2.27.
Net earnings attributable to shareholders increased 19% to $378 million.
Operating income increased 23% to $506 million.
Revenues increased 28% to $4.6 billion.
Expeditors
Expeditors
Expeditors Revenue by Segment
Revenue by Segment
Airfreight Services Revenue
CapyFin.comOcean Freight Services Revenue
CapyFin.comCustoms & Other Services Revenue
CapyFin.com Forward Guidance
Expeditors anticipates continued volatility in rates through the end of the year, with a general downward trend from previous highs. The company remains focused on customer needs and disciplined in navigating the uncertain economic environment and global supply chain challenges.
Positive Outlook
- Rates remain elevated and out of balance by historical standards.
- Airline belly capacity in many markets has not bounced back, necessitating air charters.
- Ocean transit times are stretched by port congestion.
- Shortages of equipment, labor, and warehousing space persist.
- The company will continue to explore ways to enhance efficiencies.
Challenges Ahead
- There is a great deal of uncertainty in the marketplace.
- Buy and sell rates have come down from their peaks.
- The global economy has started to slow.
- Capacity is no longer severely constrained relative to demand.
- COVID restrictions and the Ukraine conflict continue to make global shipping challenging.
Revenue & Expenses
Visualization of income flow from segment revenue to net income