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Dec 31, 2022

Expeditors Q4 2022 Earnings Report

Expeditors' Q4 2022 earnings were impacted by decreased revenues and earnings per share.

Key Takeaways

Expeditors International of Washington, Inc. reported a decrease in revenue by 36% to $3.4 billion and a decrease in diluted net earnings per share by 48% to $1.38 for Q4 2022, compared to the same quarter of 2021. The results reflect a rapid reversal from a robust operating environment, influenced by economic uncertainty and decelerating volumes.

Diluted EPS decreased 48% to $1.38.

Net earnings attributable to shareholders decreased 52% to $219 million.

Operating income decreased 47% to $330 million.

Revenues decreased 36% to $3.4 billion.

Total Revenue
$3.44B
Previous year: $5.4B
-36.2%
EPS
$1.38
Previous year: $2.66
-48.1%
Airfreight tonnage
-20%
Previous year: 13%
-253.8%
Ocean container volume
-15%
Previous year: -4%
+275.0%
Gross Profit
$437M
Previous year: $698M
-37.4%
Cash and Equivalents
$2.03B
Previous year: $1.73B
+17.7%
Total Assets
$5.59B
Previous year: $7.61B
-26.5%

Expeditors

Expeditors

Expeditors Revenue by Segment

Forward Guidance

The short-term outlook is somewhat uncertain due to a difficult economic environment and the resetting of supply and demand, which has a direct impact on available capacity and pricing. The company plans to move forward with a sharp eye on aligning expenses with revenues, particularly over the next one or two quarters, focusing on maintaining existing accounts and gaining new business, while reducing overall expenses.

Positive Outlook

  • Optimistic about the future.
  • Focus on maintaining existing accounts.
  • Focus on gaining new business.
  • Plan to move forward with a sharp eye on aligning expenses with revenues.
  • Quickly configure operations to accommodate unprecedented chaos and complexity during the pandemic.

Challenges Ahead

  • Short-term outlook is somewhat uncertain.
  • Difficult economic environment.
  • Resetting of supply and demand has a direct impact on available capacity and pricing.
  • Shippers are prioritizing cost controls.
  • Increasingly fragile global economy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income