Key Takeaways EXPD Q4 EPS of $1.49 and revenues of $2.86 B beat estimates despite lower ocean volumes.Airfreight tonnage rose 6%, lifting segment revenues 4.3%, while ocean revenues fell 32.7%.EXPD approved a new $3B buyback after returning $875M to shareholders in 2025. Expeditors International of Washington’s (EXPD) fourth-quarter 2025 earnings of $1.49 per share beat the Zacks Consensus Estimate of $1.46. The bottom line decreased 11.3% year over year. Total revenues of $2.86  billion beat the Zacks Cons ...

Core Viewpoint - Expeditors International of Washington (EXPD) is expected to report a decline in earnings per share (EPS) and revenues for the fourth quarter of 2025, with the Zacks Consensus Estimate indicating a year-over-year decrease of 13.1% in EPS and a 5.4% contraction in revenues [1][2][7]. Financial Performance Expectations - The earnings per share for the upcoming quarter is estimated at $1.46, while revenues are projected to be $2.8 billion [1][2]. - For the full year 2025, the revenue estimate stands at $11.01 billion, reflecting a 3.9% year-over-year increase, and the EPS estimate is $5.92, indicating a 3.5% increase year-over-year [2][3]. Segment Performance Insights - The airfreight services segment is expected to perform well, with revenues estimated at $1.04 billion, surpassing the previous quarter's figures, driven by growth in airfreight tonnage from North and South Asia [6][7]. - Customs brokerage and other services revenues are projected to reach $1.07 billion, marking a 9% increase from the same quarter in 2024 [8]. - Conversely, the ocean freight segment is anticipated to underperform, with revenues estimated at $688 million, reflecting a decline due to oversupply and weak demand in U.S.-China trade [8][9]. Market Conditions and Challenges - The company faces challenges from significant exposure to China, with weakening demand on trans-Pacific routes impacting results [9]. - The overall transportation industry is experiencing pressures from oversupply in ocean freight, which is contributing to downward pressure on rates [8][9]. Historical Performance - In the previous four quarters, Expeditors has consistently beaten earnings estimates, with an average surprise of 13.9% [4]. - The most recent third-quarter results showed earnings of $1.64 per share, exceeding the consensus estimate of $1.40, although total revenues decreased by 4% year-over-year [10].

Core Insights - Expeditors International of Washington (EXPD) reported third-quarter 2025 earnings of $1.64 per share, surpassing the Zacks Consensus Estimate of $1.40, with a year-over-year increase of 0.6% [1][10] - Total revenues reached $2.89 billion, exceeding the Zacks Consensus Estimate of $2.68 billion, but reflecting a 4% decline year over year due to challenges in ocean freight and services [1][10] Financial Performance - Airfreight tonnage volume increased by 4% during the quarter, while ocean container volume decreased by 3% [2] - Operating income fell by 4% year over year to $288 million, with total operating expenses decreasing by 3.5% year over year to $2.6 billion [2] - Airfreight Services revenues rose by 3.4% year over year to $1 billion, driven by growth in airfreight tonnage exports from North and South Asia [3] - Ocean freight and services revenues plummeted by 26.7% year over year to $746.1 million, impacted by pricing volatility and lower volumes [3] - Customs Brokerage and other services revenues increased by 13.5% year over year to $1.13 billion, with strong growth across all businesses in this category [3] Shareholder Returns - In the third quarter of 2025, EXPD returned $212 million to shareholders through share buybacks, totaling $725 million year to date through share repurchases and dividends [4] - The company ended the third quarter with cash and cash equivalents of $1.19 billion, up from $1.15 billion at the end of 2024 [4] Industry Context - Delta Air Lines reported third-quarter 2025 earnings of $1.71 per share, beating estimates and showing a 14% year-over-year increase due to low fuel costs [6] - United Airlines reported mixed results, with adjusted earnings per share of $2.78, surpassing estimates but declining 16.5% year over year [8]