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Expeditors (EXPD) Q2 Earnings & Revenues Beat Estimates

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Expeditors International of Washington’s (EXPD - Free Report) second-quarter 2022 earnings of $2.27 per share surpassed the Zacks Consensus Estimate of $2.09. The bottom line increased 23.3% year over year. Total revenues of $4,603.3 million surpassed the Zacks Consensus Estimate of $4,469.4 million and also increased 28% year over year. Higher revenues across all segments boosted the top line.

Airfreight tonnage and ocean container volumes decreased 17% and 11%, respectively. Operating income increased 23.2% to $506 million in the second quarter on the back of higher revenues. Total operating expenses escalated 21.9% to $4.09 billion. Due to the February cyberattacks, EXPD incurred $6 million toward costs in the June quarter for recovering its operational and accounting systems and enhancing its cybersecurity protection.

Per Jeffrey S. Musser, president and CEO of EXPD, “This was the strongest second quarter in our company’s history, even while our air and ocean volumes were soft compared to a year ago. 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.”

Airfreight Services revenues increased 5.2% year over year to $1.6 billion in the second quarter. Ocean Freight and Ocean Services revenues skyrocketed more than 60% to $1.76 billion. Customs Brokerage and Other Services revenues climbed 25.7% year over year to $1.24 billion.

During the second quarter of 2022, Expeditors, currently carrying a Zacks Rank #2 (Buy), repurchased $5 million shares at $109.81 per common share. EXPD exited the June quarter with cash and cash equivalents of $1.98 billion compared with $1.73 billion at the end of 2021.

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

Earnings Snapshots

Within the broader Transportation sector, the likes of J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) reported second-quarter 2022 results. Take a look.

J.B. Hunt reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.

Quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year. Total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength in all segments. Total operating revenues, excluding fuel surcharges, rose 21.2% year over year.

Quarterly operating income (on a reported basis) climbed 46.2% to $353.08 million on higher volumes, customer rate and cost-recovery efforts. Operating expenses escalated 30.6% to $3.48 billion.

CSX reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.

Quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.

Total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $3,642.2 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. Overall revenues per unit increased 27%.

United Airlines’ second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss.

The second quarter of 2022 was the first profitable period at UAL since the onset of the pandemic. Operating revenues at United Airlines came in at $12,112 million, beating the Zacks Consensus Estimate of $12,033.7 million.