SEATTLE - Expeditors International (NYSE:EXPD) of Washington, Inc. (NASDAQ:EXPD) today disclosed its financial results for the first quarter of 2024, revealing a downturn in earnings and revenue compared to the same quarter last year. EXPD shares were up 1.15% Tuesday morning.
The logistics giant posted a diluted net earnings per share (EPS) of $1.17, a decrease of 19% from the previous year's $1.45. Despite surpassing the analyst estimate of $1.09, the company witnessed a 25% reduction in net earnings attributable to shareholders, which stood at $169 million.
Revenue for the quarter was reported at $2.21 billion, down 15% from the previous year's $2.59 billion, narrowly missing the consensus estimate of $2.22 billion. The company's operating income also saw a decline of 22%, amounting to $215 million. These figures reflect a broader market adjustment as the industry stabilizes from the pandemic's supply chain disruptions.
Jeffrey S. Musser, President and CEO of Expeditors, commented on the results, noting that both air and ocean freight volumes saw an uptick, with airfreight tonnage and ocean container volumes increasing by 4% and 2%, respectively. This growth comes despite a general downward trend in the industry over the past year.
Musser attributed the company's ability to navigate the volatile market to operational adjustments and cost management, including an 8% reduction in salaries and related costs and a 7% decrease in headcount.
The ocean market remains particularly challenging, with muted demand and growing capacity leading to unpredictable conditions. However, the company saw an improvement in profit-per-container in the first quarter compared to the fourth quarter of 2023, thanks to rate increases. The air market also added capacity, impacting cargo rates and profit-per-kilo, although air tonnage did increase from the first quarter of 2023.
Senior Vice President and CFO Bradley S. Powell highlighted the company's continued focus on aligning headcount with shipping volumes and making strategic investments in technology and network security. Despite the market's soft rates and volatile demand, Expeditors generated $257 million in cash flow from operations during the quarter and returned $361 million to shareholders through stock repurchases.
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