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Dec 31, 2020

Expeditors Q4 2020 Earnings Report

Expeditors' Q4 2020 earnings surged, driven by record freight volumes and strong performance across all services.

Key Takeaways

Expeditors International of Washington, Inc. reported a strong fourth quarter in 2020, with EPS increasing by 47% to $1.16 and revenues increasing by 55% to $3.2 billion. The company experienced record high air tonnage and ocean containers shipped, as well as in revenue, operating income and net earnings.

Diluted EPS increased 47% to $1.16.

Net earnings attributable to shareholders increased 45% to $199 million.

Operating income increased 56% to $282 million.

Revenues increased 55% to $3.2 billion.

Total Revenue
$3.17B
Previous year: $2.05B
+55.0%
EPS
$1.16
Previous year: $0.79
+46.8%
Airfreight tonnage
10%
Previous year: -6%
-266.7%
Ocean container volume
19%
Previous year: -13%
-246.2%
Gross Profit
$343M
Previous year: $239M
+43.5%
Cash and Equivalents
$1.53B
Previous year: $1.23B
+24.2%
Total Assets
$4.93B
Previous year: $3.69B
+33.5%

Expeditors

Expeditors

Expeditors Revenue by Segment

Forward Guidance

Expeditors anticipates that air supply/demand and pricing conditions are likely to remain unsettled well into 2021 and expects the pressure on buy rates to remain elevated until port congestion and equipment shortages subside.

Positive Outlook

  • Strong knowledge-based culture.
  • Ability to collectively work as one team.
  • Strength of carrier relationships.
  • Customers' businesses improved.
  • On-boarding new customers.

Challenges Ahead

  • Air buy and sell rates were elevated and volatile.
  • Supply and demand remained severely out of alignment.
  • Air capacity remained extremely tight.
  • Ocean services business experienced significant marketplace imbalance.
  • Port congestion from labor and equipment shortages have significantly disrupted sailing schedules.

Revenue & Expenses

Visualization of income flow from segment revenue to net income