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Expeditors' (EXPD) Q2 Earnings Beat Estimates, Increase Y/Y

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Expeditors International of Washington’s (EXPD - Free Report) second-quarter 2020 earnings of $1.09 per share surpassed the Zacks Consensus Estimate by 43 cents and also improved 23.9% on a year-over-year basis.

Adding to this optimism, the top line not only rose 26.8% year over year to $2,580.6 million butalso surpassed the Zacks Consensus Estimate of $1863.7 million. The uptick in airfreight revenues boosted results. The coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) led to the increased usage of charters to meet customer needs.

Other Details

In the quarter under review, volumes pertaining to airfreight tonnage and ocean container contracted 10% and 14%, respectively, year over year. Operating income jumped 29% to $248 million in the second quarter on the back of higher revenues.

During the June quarter, this currently Zacks Rank #3 (Hold) company repurchased 0.4 million shares at an average price of $77.46 per share. The company exited the quarter with cash and cash equivalents of $1.18 billion compared with $1.23 million at the end of 2019.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Airfreight Services revenues soared 93.5% year over year to $1,434.59 million in the second quarter. Ocean Freight and Ocean Services revenues deteriorated 9.6% to $491.7 million. Moreover, Customs Brokerage and Other Services revenues decreased 12.8% year over year to $654.33 million.

Sectorial Snapshots

Let’s look into some other Zacks Transportation sector participants’ second-quarter earnings results.

Kirby Corporation’s (KEX - Free Report) second-quarter earnings of 42 cents per share were in line with the Zacks Consensus Estimate. Meanwhile, the bottom line plunged 46.8% year over year. Further, the company’s total revenues of $541.2 million lagged the Zacks Consensus Estimate of $618.4 million and declined 29.8% year over year too.

United Parcel Service’s (UPS - Free Report) earnings (excluding 10 cents from non-recurring items) per share of $2.13 surpassed the Zacks Consensus Estimate of $1.04. The bottom line also improved 8.7% year over year. Additionally, the company’s revenues of $20,459 million in the June quarter outperformed the Zacks Consensus Estimate of $17,344.4 million. Moreover, the top line rose13.4% on a year-over-year basis.

Norfolk Southern Corporation’s (NSC - Free Report) second-quarter earnings of $1.53 per share beat the Zacks Consensus Estimate of $1.39. However, the bottom line slumped 43% on a year-over-year basis. Railway operating revenues in the quarter came in at $2,085 million, edging past the Zacks Consensus Estimate of $2,061.5 million. The company’s top line, however, declined 29% year over year.

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