Expeditors International Of Washington, Inc. EXPD reported a second-quarter fiscal 2024 revenue increase of 9% year-over-year to $2.439 billion, beating the consensus of $2.28 billion.
Airfreight tonnage volume increased by 15%, and ocean container volume decreased by 3%. EPS of $1.24, down 5% YoY, missing the consensus of $1.26.
Operating income decreased 9.9% to $223.92 million; the margin contracted 191 bps to 9.2%.
EXPD's cash flow from operations for the quarter totaled $126.769 million, down from $158.446 million a year ago. The company held cash and cash equivalents at the end of the period of $1.271 billion.
The company returned $205 million to shareholders in common stock repurchases and dividends during the quarter.
"Air market capacity has been constrained by e-commerce demand, and ocean routing has been significantly disrupted by geopolitical events in the Red Sea, causing less frequent services due to blank sailings, longer transit times as well as port congestion. We have continued to adjust to the disruptions and uneven demand, keeping costs in check while we work to bring efficiency back in line with historical expectations," commented Jeffrey S. Musser, president and Chief Executive Officer.
"Expenses are still high compared to our 30% efficiency target (operating income as a percentage of revenue less directly related cost of transportation and other expenses), with compensation being our largest and most variable operating expense," commented Bradley S. Powell, Senior Vice President and Chief Financial Officer.
Price Action: EXPD shares are trading lower by 4.27% at $116.11 at the last check Tuesday.
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