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Sep 30, 2023
Expeditors Q3 2023 Earnings Report
Expeditors' financial performance significantly declined due to decelerating demand, soft rates, and excess capacity.
Key Takeaways
Expeditors International of Washington reported a significant decrease in financial results for Q3 2023 compared to the same quarter of 2022. EPS decreased by 54% to $1.16, net earnings decreased by 59% to $171 million, operating income decreased by 59% to $216 million, and revenues decreased by 50% to $2.2 billion. The company faced challenges including decelerating demand, soft rates, and excess capacity in most lanes.
Diluted net earnings per share decreased 54% to $1.16.
Net earnings attributable to shareholders decreased 59% to $171 million.
Operating income decreased 59% to $216 million.
Revenues decreased 50% to $2.2 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 continued uncertainty in the economic environment, focusing on cost control and efficiency while preparing for a potential demand recovery.
Positive Outlook
- Tonnage and volumes increased from the June quarter, marking the first sequential quarterly growth in both tons and volumes since the third quarter of 2022.
- Dedicated to improving efficiency.
- Preparing for the time when demand shows signs of a sustained recovery.
- Mindful of strong cash position.
- Returned more than $2 billion to shareholders in repurchased stock and dividends over the past 12 months.
Challenges Ahead
- Deceleration in demand has continued since the second half of 2022.
- Rates generally remained soft while capacity exceeded demand in most lanes.
- Experienced declines in the number of customs brokerage transactions.
- Shippers continue to pivot back to ocean freight to reduce costs in an uncertain economy.
- Yet to see signs of a widespread improvement in rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income