Expeditors (EXPD) thrives with shareholder-friendly initiatives and strong liquidity but grapples with declining volumes and high capex challenges.Factors Favoring EXPDExpeditors impressively prioritizes shareholder value. Management announced a 15.5% increase in its semi-annual cash dividend in May 2022. Continuing its pro-shareholder approach, EXPD hiked its semi-annual cash dividend by a further 3% in 2023, adding up to 69 cents per share. The company actively pursued share buybacks, repurchasing 14.5 mi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41871 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. (Exact name of registrant as specified in its charter) Washington 91-1069248 (State or other ...

Expeditors International of Washington’s (EXPD) fourth-quarter 2023 earnings of $1.09 per share missed the Zacks Consensus Estimate of $1.21. The bottom line plunged 21% year over year due to volume woes. Total revenues of $2.28 billion beat the Zacks Consensus Estimate of $2.24 billion but declined 33.8% year over year.Airfreight tonnage and ocean container volumes dipped 3% and 10%, respectively. We had expected airfreight tonnage and ocean container volumes to decline 7.7% and 9%, respectively, from four ...

Expeditors International (EXPD) reported $2.28 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 33.8%. EPS of $1.09 for the same period compares to $1.38 a year ago.The reported revenue represents a surprise of +1.88% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $1.21, the EPS surprise was -9.92%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NYSE:EXPD) today announced fourth quarter 2023 financial results including the following highlights compared to the same quarter of 2022: Diluted Net Earnings Attributable to Shareholders per share (EPS1) decreased 21% to $1.09 Net Earnings Attributable to Shareholders decreased 28% to $159 million Operating Income decreased 40% to $199 million Revenues decreased 34% to $2.3 billion Airfreight tonnage volume decreased 3% and ...

Wall Street analysts expect Expeditors International (EXPD) to post quarterly earnings of $1.21 per share in its upcoming report, which indicates a year-over-year decline of 12.3%. Revenues are expected to be $2.24 billion, down 35% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a ...

Expeditors International of Washington (EXPD) is scheduled to report fourth-quarter 2023 results on Feb 20, before market open.The company has an unimpressive earnings surprise history, having outperformed the Zacks Consensus Estimate in only one of the preceding four quarters and missing in the other three, the average miss being 9.39%. The Zacks Consensus Estimate for EXPD’s soon-to-be reported quarter’s earnings has increased 1.68% in the past 60 days to $1.21 per share.We expect Expeditors’ performance ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-13468 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. (Exact name of registrant as specified in its charter) | Washington | 91-1069248 | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-13468 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. (Exact name of registrant as specified in its charter) | Washington | 91-1069248 | | --- | ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) For the first quarter of 2023, Expeditors reported a significant year-over-year decline in financial performance, with total revenues dropping to **$2.59 billion** from **$4.66 billion** and net earnings attributable to shareholders decreasing to **$226 million** from **$346 million**, primarily driven by falling rates and volumes in air and ocean freight Condensed Consolidated Statements of Earnings (Q1 2023 vs Q1 2022) | Financial Metric | Q1 2023 (In thousands) | Q1 2022 (In thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $2,592,589 | $4,664,298 | -44.4% | | Airfreight services revenues | $904,903 | $1,598,555 | -43.4% | | Ocean freight and ocean services revenues | $697,307 | $1,976,246 | -64.7% | | **Operating Income** | $275,969 | $461,760 | -40.2% | | **Net Earnings Attributable to Shareholders** | $226,011 | $346,109 | -34.7% | | **Diluted EPS** | $1.45 | $2.05 | -29.3% | Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $2,350,794 | $2,034,131 | | Total current assets | $4,257,011 | $4,518,017 | | Total assets | $5,332,577 | $5,590,434 | | Total current liabilities | $1,760,056 | $2,054,055 | | Total equity | $3,150,368 | $3,113,535 | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three months ended March 31, 2023 (In thousands) | Three months ended March 31, 2022 (In thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $546,412 | $413,946 | | Net cash from investing activities | ($9,551) | ($14,333) | | Net cash from financing activities | ($226,566) | $17,759 | - In Q1 2023, the company repurchased **1,959 thousand shares** at an average price of **$108.98 per share** No shares were repurchased in the same period in 2022[39](index=39&type=chunk) - The company incurred cumulative additional expenses of **$60 million**, net of recoveries, as a result of the 2022 cyber-attack In Q1 2022, this included approximately **$42 million** in incremental demurrage charges and **$20 million** in other costs[48](index=48&type=chunk)[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=12&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant downturn in Q1 2023 performance to a global economic slowdown, high customer inventory levels, and the normalization of freight rates from pandemic-era highs, while maintaining a strong liquidity position and continuing its share repurchase program - Key operational highlights for Q1 2023 include lower volumes due to softening customer demand, declining average buy and sell rates as capacity exceeded demand, and a **35% decrease in net earnings to shareholders**[61](index=61&type=chunk) - The global economic environment remains uncertain due to potential impacts of pandemics, inflation, rising interest rates, and the conflict in Ukraine A slowdown in the global economy and softening customer demand began in Q2 2022 and continued through Q1 2023[63](index=63&type=chunk) [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Operating income fell **40% to $276.0 million** in Q1 2023 from **$461.8 million** in Q1 2022, driven by sharp revenue declines in Airfreight (**-43%**) and Ocean freight (**-65%**) due to falling rates and volumes Comparison of Operations (Q1 2023 vs Q1 2022) | (in thousands) | Q1 2023 | Q1 2022 | Percentage change | | :--- | :--- | :--- | :--- | | **Airfreight services revenues** | $904,903 | $1,598,555 | (43)% | | **Ocean freight services revenues** | $697,307 | $1,976,246 | (65)% | | **Customs brokerage revenues** | $990,379 | $1,089,497 | (9)% | | **Operating income** | $275,969 | $461,760 | (40)% | | **Net earnings attributable to shareholders** | $226,011 | $346,109 | (35)% | - Airfreight revenues and expenses decreased by **43%** and **42%** respectively, driven by a **44%** decrease in average sell rates and a **6%** decrease in tonnage as market rates declined and demand softened[70](index=70&type=chunk) - Ocean freight revenues and expenses fell **65%** and **70%** respectively, primarily due to a **62%** drop in average sell rates and a **26%** decrease in containers shipped as demand softened and port congestion eased[72](index=72&type=chunk)[73](index=73&type=chunk) - Customs brokerage expenses decreased **26%** YoY, largely because Q1 2022 included approximately **$42 million** in incremental demurrage charges resulting from the cyber-attack[77](index=77&type=chunk)[78](index=78&type=chunk) - Salaries and related costs decreased **17%** due to lower commissions and bonuses, reflecting the decline in operating income Management bonuses decreased by **45%** compared to the same period in 2022[81](index=81&type=chunk)[83](index=83&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with working capital of **$2.5 billion**, including **$2.35 billion** in cash and cash equivalents as of March 31, 2023, and net cash from operations increased to **$546 million** from **$414 million** in the prior year - As of March 31, 2023, the company had working capital of **$2,497 million**, including cash and cash equivalents of **$2,351 million**, and no long-term debt[90](index=90&type=chunk) - Net cash provided by operating activities increased by **$132 million** YoY to **$546 million**, primarily due to the collection of accounts receivable[90](index=90&type=chunk) - During Q1 2023, the company used **$227 million** in financing activities, which included the repurchase of **2.0 million shares** of common stock[94](index=94&type=chunk) - Total anticipated capital expenditures for 2023 are estimated to be **$100 million**, covering routine expenditures, improvements, and technology investments[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign exchange and interest rate fluctuations, with a hypothetical **10%** weakening of the U.S. dollar in Q1 2023 increasing operating income by approximately **$16 million**, and no derivative financial instruments used to manage this risk - A hypothetical **10%** weakening of the U.S. dollar during Q1 2023 would have increased operating income by approximately **$16 million**[100](index=100&type=chunk) - A hypothetical **10%** strengthening of the U.S. dollar during Q1 2023 would have reduced operating income by approximately **$13 million**[100](index=100&type=chunk) - The company does not currently use derivative financial instruments to manage foreign currency risk Net foreign currency losses were approximately **$3 million** in Q1 2023, compared to **$2 million** in net gains in Q1 2022[101](index=101&type=chunk)[87](index=87&type=chunk) - Interest rate risk is low, as the company had no long-term debt at March 31, 2023 A hypothetical **10 basis point** change in interest rates would not significantly impact earnings[102](index=102&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2023, due to a material weakness in IT program change management, with remediation expected by year-end - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were not effective as of the end of the reporting period[103](index=103&type=chunk) - The ineffectiveness is due to a material weakness in internal control over financial reporting related to IT program change management, as disclosed in the 2022 Annual Report[103](index=103&type=chunk) - The company is implementing enhancements to strengthen IT processes and expects the remediation of this material weakness to be completed prior to the end of 2023[104](index=104&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims, lawsuits, and investigations in the ordinary course of business, none of which are expected to significantly affect operations, cash flows, or financial position - In management's opinion, based on advice from legal and tax advisors, none of the current legal matters are expected to have a significant effect on the Company's operations, cash flows or financial position[108](index=108&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from the 2022 Form 10-K, except for an update emphasizing the impact of global economic uncertainty, which could lead to lower freight volumes, reduced sell rates, and higher operating expenses - A key risk factor is that unfavorable economic conditions, rising interest rates, and high inflation could result in lower freight volumes, reduced sell rates, and higher operating expenses, which may adversely affect revenues, operating results, and cash flows[109](index=109&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2023, the company repurchased **1,959 thousand shares** of its common stock at an average price of **$108.98 per share** under the Discretionary Stock Repurchase Plan, amended on February 20, 2023, to authorize repurchases down to **140 million shares** outstanding Issuer Purchases of Equity Securities (Q1 2023) | Period | Total number of shares purchased (in thousands) | Average price paid per share | | :--- | :--- | :--- | | Jan 1-31, 2023 | - | - | | Feb 1-28, 2023 | - | - | | Mar 1-31, 2023 | 1,959 | $108.98 | | **Total** | **1,959** | **$108.98** | - On February 20, 2023, the Board of Directors authorized repurchases of common stock down to **140 million shares** This authorization has no expiration date[112](index=112&type=chunk)