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Sep 30, 2022
Expeditors Q3 2022 Earnings Report
Expeditors' Q3 2022 financial performance remained strong despite uncertain economic conditions, with revenue increasing slightly and EPS growing significantly.
Key Takeaways
Expeditors International of Washington, Inc. reported a 1% increase in revenues to $4.4 billion and a 22% increase in diluted EPS to $2.54 for the third quarter of 2022, compared to the same quarter of 2021. The company faced uncertain economic conditions, including declines in airfreight tonnage and ocean container volume, but effectively managed costs and adapted to changing market dynamics.
Diluted EPS increased by 22% to $2.54 compared to Q3 2021.
Net earnings attributable to shareholders increased by 15% to $414 million.
Operating income increased by 8% to $527 million.
Revenues increased by 1% to $4.4 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
The company anticipates decelerating demand and declining rates to persist for the remainder of 2022 and into 2023, while remaining focused on cost control and customer service.
Positive Outlook
- The company has a proven track record of adapting to changing operating conditions.
- Expeditors is focused on controlling costs in the face of decelerating demand.
- The company remains fully engaged with customers to accommodate their needs.
- Expeditors is investing in its people, processes, and technology for the long term.
- The company believes it will be fully capable of meeting the eventual upturn in demand.
Challenges Ahead
- Inflation is expected to continue exerting pressure on global supply chains.
- High energy costs are expected to continue exerting pressure on global supply chains.
- Government fiscal and monetary measures are expected to continue exerting pressure on global supply chains.
- Shippers are looking to shrink retail inventories that were overstocked earlier in the year.
- Decelerating demand and an overall decline in rates are likely to continue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income