NYSE$EXPD

Expeditors International of Washington · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Expeditors' financial performance increased in Q1 2022 despite facing a cyber-attack.

Expeditors International of Washington reported a 46% increase in revenues to $4.7 billion and a 23% increase in EPS to $2.05 for Q1 2022, despite an 18% decrease in airfreight tonnage and a 3% decrease in ocean container volume due to a cyber-attack.

  • Diluted EPS increased 23% to $2.05.
  • Net earnings attributable to shareholders increased 21% to $346 million.
  • Operating income increased 20% to $462 million.
  • Revenues increased 46% to $4.7 billion.

Headline financials

Total Revenue

$4.66B

Previous: $3.36B+38.9%
EPS (adj)

$2.05

Previous: $1.67+22.8%
Airfreight Tonnage Growth

-18.0%

Previous: 29.0%-162.1%
Ocean Container Volume Growth

-3.0%

Previous: 29.0%-110.3%
Free Cash Flow

$346M

Previous: $287M+20.5%
Net Income

$346M

Previous: $287M+20.5%
Operating Income

$462M

Previous: $386M+19.8%
Gross Profit

-$3.52B

Previous: -$2.41B-46.1%
Cash & Equivalents

$2.14B

Previous: $1.79B+19.3%
Total Assets

$7.96B

Previous: $5.45B+45.8%
Stock-Based Comp

$11.6M

Previous: $11.2M+3.7%

Revenue & EPS history

Expeditors · Revenue · Quarterly

$4.66B

Q1 2022+38.9%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Expeditors · $4.66B total across 3 segments · Q1 2022

  • Ocean Freight and Services
    $1.98B+106.3%
  • Airfreight Services
    $1.6B+8.2%
  • Customs Brokerage and Other Services
    $1.09B+18.1%

Forward guidance

Expeditors anticipates continued imbalance in air and ocean supply and demand, and cautions that a return to pre-pandemic levels could decrease revenues, expenses, and operating income.

Tailwinds

  • The company's core systems are operational after the cyber-attack.
  • Employees found alternative solutions to keep freight moving during the systems shutdown.
  • The company believes the bulk of the expenses related to the cyber-attack are behind them.
  • The company is implementing system enhancements to prevent future attacks.
  • Rates remained elevated due to ongoing supply chain bottlenecks and capacity constraints.

Headwinds

  • The cyber-attack limited the company's ability to arrange shipments, manage customs and distribution activities, and perform certain accounting functions.
  • The company incurred approximately $40 million in incremental demurrage charges due to the inability to timely process and move shipments.
  • The company incurred approximately $20 million in investigation, recovery, and remediation expenses related to the cyber-attack.
  • The company may incur additional expenses related to the cyber-attack, including third-party expenses, incremental information services costs, legal fees, or indemnities to customers or business partners.
  • The company's revenues, expenses, and operating income are likely to decline from the all-time highs that it experienced in 2021 if demand and rates return to pre-pandemic levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.2%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+10.9%

Q3 2025

Best reaction

-8.3%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.6%+11.9%+12.4%
Q4 2025-4.5%-3.1%-4.7%
Q3 2025+10.9%+12.2%+22.9%
Q1 2025-5.1%-2.4%-0.6%
Q4 2024+3.9%+2.4%+1.8%
Q3 2024-0.8%-0.3%+0.0%
Q2 2024-3.6%-1.8%+1.0%
Q1 2024+1.0%+2.3%+8.5%
Q4 2023-5.0%-3.2%-2.1%
Q3 2023+1.5%+3.5%+7.7%
Q2 2023-6.0%-6.3%-7.5%
Q1 2023+1.1%+1.0%-4.3%
Q4 2022-5.6%-3.8%-6.1%
Q3 2022+9.5%+16.9%+12.7%
Q2 2022-3.5%-2.8%-2.5%
Q1 2022+10.8%+8.0%+9.0%
Q4 2021-4.2%-0.8%-2.2%
Q3 2021+1.5%-0.5%-2.6%
Q2 2021-0.8%-1.9%-2.0%
Q1 2021+0.4%+4.9%+9.7%
Q4 2020-2.2%-3.3%+7.4%
Q3 2020+0.6%+0.5%+3.6%
Q2 2020-2.0%-0.4%+3.2%
Q1 2020+1.8%+4.8%+8.7%
Q4 2019+3.8%+2.8%-21.0%
Q3 2019+3.1%+3.4%-2.1%
Q2 2019+4.1%+3.7%+4.1%
Q1 2019-4.8%-6.2%-8.8%
Q4 2018+2.6%+2.9%+3.1%
Q3 2018+6.5%+4.1%+7.8%
Q2 2018-5.3%-5.7%-2.6%
Q1 2018+10.3%+13.1%+18.9%
Q4 2017-0.2%+2.2%-2.6%
Q3 2017+5.2%+4.1%+11.6%
Q2 2017-5.8%-7.8%-4.2%
Q1 2017-3.4%-2.9%-3.3%
Q4 2016+0.2%+0.4%-1.1%
Q3 2016-4.6%-2.5%+8.4%
Q2 2016+2.9%+3.2%+3.2%
Q1 2016-5.3%
Q4 2015-2.7%
Q3 2015-3.4%
Q2 2015+3.1%
Q1 2015+3.0%
Q4 2014+5.9%
Q3 2014+1.8%
Q2 2014-8.3%
Q1 2014+5.3%
Q4 2013-7.1%
Q3 2013-7.9%
Q2 2013+2.2%
Q1 2013+3.1%
Q4 2012-4.4%
Q3 2012+0.1%
Q2 2012+1.1%
Q1 2012-1.5%
Q4 2011+1.3%
Q3 2011+3.8%
Q2 2011-4.9%
Q1 2011+2.0%
Q4 2010-1.5%
Q3 2010-2.6%
Q2 2010-0.8%
Q1 2009+5.5%
Q1 2010-1.0%
Q4 2007-0.7%
Q4 2009-0.7%
Q3 2009+1.7%
Q3 2008+1.7%
Q2 2009+5.1%
Q2 2008+5.1%
Q4 2008+5.1%

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