NYSE$EXPD

Expeditors International of Washington · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Expeditors reported an increase in EPS and revenue, but a decrease in airfreight and ocean container volume due to COVID-19 impacts.

Expeditors International of Washington, Inc. reported a 27% increase in revenues to $2.6 billion and a 24% increase in diluted net earnings per share (EPS) to $1.09 for the second quarter of 2020, compared to the same quarter of 2019. The results were impacted by COVID-19, which led to lower volumes across all products, but airfreight revenue was greater than anticipated due to high demand for shipping technology and medical equipment.

  • Diluted EPS increased 24% to $1.09 compared to Q2 2019.
  • Net earnings attributable to shareholders increased 20% to $184 million compared to Q2 2019.
  • Revenues increased 27% to $2.6 billion compared to Q2 2019.
  • Airfreight tonnage volume decreased 10% and ocean container volume decreased 14% compared to Q2 2019.

Headline financials

Total Revenue

$2.58B

Previous: $2.04B+26.8%
EPS (adj)

$1.09

Previous: $0.88+23.9%
Airfreight Tonnage Growth

-10.0%

Previous: 0.0%
Ocean Container Volume Growth

-14.0%

Previous: 0.0%
Free Cash Flow

$184M

Previous: $153M+20.1%
Net Income

$184M

Previous: $153M+20.1%
Operating Income

$248M

Previous: $192M+28.8%
Gross Profit

-$1.83B

Previous: $252M-827.3%
Cash & Equivalents

$1.18B

Previous: $1.08B+9.0%
Total Assets

$3.81B

Previous: $3.65B+4.5%
Stock-Based Comp

$21.6M

Previous: $23.8M-9.2%

Revenue & EPS history

Expeditors · Revenue · Quarterly

$2.58B

Q2 2020+26.8%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Expeditors · $2.58B total across 3 segments · Q2 2020

  • Airfreight Services
    $1.43B+93.5%
  • Customs Brokerage and Other Services
    $654M-12.8%
  • Ocean Freight and Services
    $492M-9.6%

Forward guidance

Expeditors anticipates the effects of the global pandemic will continue to impact its consolidated financial results and geographical segments unevenly throughout the remainder of 2020.

Tailwinds

  • Focus on increasing operational efficiencies.
  • Focus on gaining profitable market share.
  • Strong financial position to continue investments.
  • Remain a strong, healthy, and unified organization.
  • Demonstrated resiliency under trying conditions.

Headwinds

  • Uncertain operating environment.
  • Effects of COVID-19 led to lower volumes for all products.
  • Unable to remember a time when the operating environment has been so uncertain.
  • Keep costs in check.
  • Not knowing how or when the global economy will recover.

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 Q2 2020

Historical avgQ2 2020

+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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