NYSE$EXPD

Expeditors International of Washington · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Expeditors' financial performance declined due to freight marketplace reset and reversion to pre-pandemic levels, impacting revenues primarily in air and ocean businesses.

Expeditors International of Washington reported a decrease in its second-quarter 2023 financial results compared to the same quarter of 2022. EPS decreased by 43% to $1.30, net earnings attributable to shareholders decreased by 48% to $197 million, operating income decreased by 51% to $248 million, and revenues decreased by 51% to $2.2 billion. The decline was attributed to the resetting freight marketplace and a return to pre-pandemic levels of activity.

  • Diluted net earnings per share decreased 43% to $1.30.
  • Net earnings attributable to shareholders decreased 48% to $197 million.
  • Operating income decreased 51% to $248 million.
  • Revenues decreased 51% to $2.2 billion.

Headline financials

Total Revenue

$2.24B

Previous: $4.6B-51.3%
EPS (adj)

$1.30

Previous: $2.27-42.7%
Airfreight Tonnage Growth

-15.0%

Previous: -17.0%+11.8%
Ocean Container Volume Growth

-13.0%

Previous: -11.0%-18.2%
Free Cash Flow

$197M

Previous: $378M-47.9%
Net Income

$197M

Previous: $378M-47.9%
Operating Income

$248M

Previous: $506M-50.9%
Gross Profit

-$1.42B

Previous: -$3.44B+58.8%
Cash & Equivalents

$1.7B

Previous: $1.98B-14.1%
Total Assets

$4.56B

Previous: $7.36B-38.0%
Stock-Based Comp

$18.6M

Previous: $25.5M-27.1%

Revenue & EPS history

Expeditors · Revenue · Quarterly

$2.24B

Q2 2023-51.3%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Expeditors · $2.24B total across 3 segments · Q2 2023

  • Customs Brokerage and Other Services
    $895M-27.9%
  • Airfreight Services
    $751M-53.1%
  • Ocean Freight and Services
    $594M-66.3%

Forward guidance

The company anticipates current market conditions to persist through the end of the year, with shippers remaining cautious and carrier capacity not aligning with current demand levels. The company will continue to manage headcount and align costs with lower demand levels, while preparing for future stabilization and recovery.

Tailwinds

  • The company is focused on controlling costs.
  • The company is improving operational efficiencies.
  • The company returned $1 billion to shareholders in repurchased stock and dividends paid out during the first six months of the year.
  • The company returned more than $2.1 billion to shareholders over the past 12 months.
  • The company is preparing for the future when operating conditions eventually stabilize and demand and volumes begin to recover and grow.

Headwinds

  • Shippers are cautious.
  • The economy remains uncertain.
  • Carrier capacity does not adequately reflect the current levels of marketplace demand.
  • Freight marketplace has continued to reset and has reverted closer to pre-pandemic levels of activity
  • Pricing is becoming a more critical determining factor to shippers.

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 2023

Historical avgQ2 2023

+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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