Expeditors International's stock sinks after earnings, revenue miss expectations as freight shipping demand, rates remain soft
Shares of Expeditors International of Washington Inc. (EXPD) sank 5.8% toward an eight-month low in premarket trading Tuesday, after the air and ocean freight logisitics company missed third-quarter profit and revenue expectations, citing a continued deceleration in demand and soft rates. Net earnings fell to $171.4 million, or $1.16 a share, from $414.2 million, or $2.56 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.28. Revenue dropped 49.8% to $2.19 billion, below the FactSet consensus of $2.29 billion. "The shipping industry has been undergoing a great unwinding of so many of the drivers that led up to the massive mismatch of supply and demand that occurred during the pandemic," said Chief Executive Jeffrey Musser. "As a result, air and ocean capacity is now mostly plentiful and at rates that remain well below the pandemic period." The company said it has cut its workforce by 8% since the end of 2022, and will continue to focus on aligning its headcount with transactions and volumes. The stock has dropped 10.7% over the past three months through Monday, while the Dow Jones Transportation Average has given up 12.6% and the Dow Jones Industrial Average has shed 3.9%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-07-23 0848ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing