- Expeditors International of Washington Inc EXPD reported second-quarter revenue growth of 27.6% year-over-year to $4.6 billion, missing the consensus of $4.73 billion.
- Revenue by segment: Airfreight services $1.6 billion (+5.2% Y/Y); Ocean freight and ocean services $1.76 billion (+60.2% Y/Y); and Customs brokerage and other services $1.24 billion (+25.7% Y/Y).
- EPS was $2.27 (+23% Y/Y), beating the consensus of $2.14.
- Airfreight tonnage volume and ocean container volume decreased 17% and 11% Y/Y, respectively.
- The operating income increased by 23.2% Y/Y to $505.98 million, and the margin contracted by 40 bps to 11%.
- EXPD's net cash from operating activities year-to-date totaled $972.59 million, compared to $386.13 million a year ago. It held cash and cash equivalents of $1.98 billion as of June 30, 2022.
- "During the second quarter we continued the recovery from the February cyber-attack and re-established digital connections with many of our customers, which limited our ability to move cargo through our systems. We also experienced a significant drop in volumes in China due to the various lockdowns that resulted in factories not operating and cargo being unavailable to ship. We believe the volume changes are primarily related to timing of our recovery from the cyber-attack, our significant market presence in China, as well as a slowing economy and an overall drop in demand," commented CEO Jeffrey S. Musser.
- Price Action: EXPD shares are trading lower by 3.99% at $102.23 on the last check Tuesday.
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