Founded in 1979, Expeditors International of Washington, INC (NYSE: EXPD ) or just “Expeditors” from now on, is a leading third-party logistics company operating globally. During its 45 years of existence, they have build a powerful network servicing the main trade corridors betweenStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations f ...

Expeditors International of Washington (EXPD) is thriving with an increase in volumes, which is boosting its top line. Shareholder-friendly initiatives are encouraging. However, EXPD is grappling with geopolitical uncertainties and elevated operating expenses.Factors Favoring EXPDThe robust growth in air tonnage and ocean volumes had a positive impact on all areas of EXPD during the third quarter of 2024. Airfreight tonnage rose 19%, while ocean container volumes grew 12%. Rates also saw widespread increase ...

Expeditors International of Washington (EXPD) is benefiting from its cost-reduction initiatives. The company’s shareholder-friendly initiatives also bode well.Let us delve deep to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.EXPD’s Northward Earnings Estimates: In the past 60 days, the Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has been revised upward by 6.9%, 8.4% and 0.2%, respectively. Such favorable estimate revisions indicate brokers’ con ...

Financial Performance - Operating income increased by 40% from the third quarter of 2023 and 35% from the second quarter of 2024[44] - Net earnings to shareholders increased by 34% from the third quarter of 2023 and 31% from the second quarter of 2024[45] - Operating income increased by 40% to $301,524 thousand for the three months ended September 30, 2024, compared to the same period in 2023[51] - Net earnings attributable to shareholders rose by 34% to $229,574 thousand for the three months ended September 30, 2024[51] Revenue Growth - Ocean containers shipped increased by 12% and airfreight tonnage increased by 19% compared to the third quarter of 2023[44] - Airfreight services revenues increased by 36% to $986,950 thousand for the three months ended September 30, 2024, compared to the same period in 2023, driven by a 19% increase in tonnage and higher average sell and buy rates[51][53] - Ocean freight and ocean services revenues surged by 82% to $1,017,618 thousand for the three months ended September 30, 2024, primarily due to a 101% increase in average sell rates and a 12% rise in containers shipped[51][54] - Customs brokerage and other services revenues grew by 10% to $995,563 thousand for the three months ended September 30, 2024, mainly due to higher shipment volumes in North America[51][56] - Ocean freight consolidation revenues increased by 125% for the three months ended September 30, 2024, due to a 101% rise in average sell rates and a 12% increase in containers shipped[54] - North Asia and South Asia ocean freight and ocean services revenues increased by 135% and 164%, respectively, for the three months ended September 30, 2024[54] Cash Flow and Capital Management - Cash from operations was $90 million, down from $190 million in the third quarter of 2023, due to significant investment in working capital[45] - The company returned $140 million to shareholders through common stock repurchases[45] - Net cash provided by operating activities for the three and nine months ended September 30, 2024 was $90 million and $474 million, respectively, compared to $190 million and $895 million in the same periods in 2023[64] - Working capital at September 30, 2024 was $1,707 million, including cash and cash equivalents of $1,293 million[64] - Cash used in investing activities for the three and nine months ended September 30, 2024 was $13 million and $30 million, respectively, primarily for capital expenditures[64] - Cash used in financing activities during the three and nine months ended September 30, 2024 was $659 million and $1,247 million, respectively, primarily for repurchasing common stock[64] - Cash and cash equivalents at September 30, 2024 were $1,293 million, with $614 million invested at short-term market interest rates[68] Market and Demand Trends - Strong demand for ocean transportation led to higher volumes and sharp increases in average buy and sell rates[44] - Demand for airfreight out of Asia remained high due to capacity constraints and e-commerce business demand[44] - Historical seasonal demand trends show the first quarter as the weakest and the third and fourth quarters as the strongest[47] - The company's revenues are significantly impacted by consumer demand, trade tariffs, and supply chain disruptions[47] - Airfreight services tonnage increased by 19% for the three months ended September 30, 2024, driven by higher demand in healthcare and technology sectors[53] Operational Costs and Expenses - Salaries and related costs increased by 9% to $450,308 thousand for the three months ended September 30, 2024, due to higher commissions and bonuses[57] - The consolidated effective income tax rate was 26.4% for both the three and nine months ended September 30, 2024[59] Foreign Currency Impact - Net foreign currency losses for the three months ended September 30, 2024 were approximately $11 million, compared to less than $1 million in the same period in 2023[60] - Net foreign currency gains for the nine months ended September 30, 2024 were less than $1 million, compared to net losses of approximately $6 million in the same period in 2023[60] - A hypothetical 10% weakening of the U.S. dollar would have increased operating income by approximately $45 million for the nine months ended September 30, 2024[66] Liabilities and Obligations - Borrowings under international unsecured bank lines of credit at September 30, 2024 were $48 million, with $87 million in contingent liabilities from standby letters of credit and guarantees[65] - Fixed lease payment obligations at September 30, 2024 totaled $699 million, with $141 million payable within 12 months[65] Global Operations and Risks - The company operates in over 60 countries and is influenced by global economic and political conditions, including tariffs and trade restrictions[46]

Expeditors International (EXPD) reported $3 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 37%. EPS of $1.63 for the same period compares to $1.16 a year ago.The reported revenue represents a surprise of +26.72% over the Zacks Consensus Estimate of $2.37 billion. With the consensus EPS estimate being $1.33, the EPS surprise was +22.56%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Expeditors International (EXPD) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.56%. A quarter ago, it was expected that this logistics services provider would post earnings of $1.24 per share when it actually produced earnings of $1.24, delivering no surprise.Over the last four qu ...

Expeditors International (EXPD) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 5, 2024, might help the stock move higher if these key numbers ...

Expeditors International of Washington (EXPD) is scheduled to report its third-quarter 2024 results on Nov. 5 before market open. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. The company has a disappointing earnings history, having missed the Zacks Consensus Estimate in two of the preceding four quarters and surpassed twice. The average miss is 2.7%. The Zacks Consensus Estimate for EXPD's soon-to-be-reported quarter's earnings is pegged at $1.33 per share, revised upward by 3.10% ...

Expeditors International (EXPD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Th ...

Expeditors' (EXPD) robust liquidity position is boosting the company's financial stability. The shareholderfriendly approach also bodes well for the company. However, EXPD is grappling with increased operating expenses, hurting the company's bottom line. Factors Favoring EXPD Expeditors' commitment to rewarding its shareholders through dividends and buybacks is encouraging. The company has returned $205 million to shareholders in stock repurchases and dividends during the second quarter of 2024. These initi ...