Expeditors Q2 Revenue Plummets: 'It's A Reverse Of The Covid Pandemic,' CEO Says

Expeditors International of Washington Inc EXPD reported second-quarter (Q2) revenue decline of 51% Y/Y to $2.24 billion, missing the consensus of $2.88 billion.

Airfreight tonnage volume declined 15% Y/Y, and ocean container volume was down 13% Y/Y.

Notably, total air cargo capacity is above pre-pandemic levels, reflecting strong passenger demand, continued higher utilization of freighter capacity, and new and idled aircraft brought back into service.

Operating income fell 51% Y/Y to $248.5 million in the quarter.

EPS of $1.30, down 43% Y/Y, missed the consensus of $1.34.

The company returned $1 billion to shareholders through share repurchase and dividend payments in first half of 2023.

Operating cash flow decreased to $158.4 million from $558.6 million a year ago.

As of June 30, cash and cash equivalents stood at $1.70 billion.

Expeditors CEO Jeffrey S. Musser said the company will continue to "manage down" its headcount to align costs with lower levels of demand.

"In many ways, current conditions are very much the reverse of what we experienced in the early days of the pandemic, as the current marketplace shifts to a lower gear on increased capacity and falling rates and demand," he said. "We do not see those conditions changing meaningfully before the end of the current year. Shippers are cautious, the economy remains uncertain, and carrier capacity does not adequately reflect the current levels of marketplace demand."

Price Action: EXPD shares are trading lower by 3.24% at $120.77 on the last check Tuesday.