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Expeditors (EXPD) Q1 Earnings Beat, Revenues Miss Estimates
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Expeditors International of Washington’s (EXPD - Free Report) first-quarter 2023 earnings of $1.45 per share surpassed the Zacks Consensus Estimate of $1.36. However, the bottom line decreased 29.3% year over year. Total revenues of $2,592.6 million lagged the Zacks Consensus Estimate of $3,149.5 million and decreased 44.4% year over year. Results were hurt by the lackluster demand scenario.
Airfreight tonnage and ocean container volumes decreased 6% and 26%, respectively. Operating income declined 40% to $276 million. Total operating expenses fell 44.9% to $2.32 billion.
Airfreight Services revenues decreased 43.4% year over year to $904.9 million in the first quarter of 2023. Ocean Freight and ocean services revenues fell 64.7% to $697.3 million. Customs Brokerage and other services revenues declined 9.9% year over year to $990.38 million.
Per Jeffrey S. Musser, EXPD’s president and chief executive officer, "Operating conditions during the first quarter of 2023 were very similar to what we experienced in the fourth quarter of 2022, when shippers swiftly adapted to increased consumer caution and slowing demand for their products, while also battling inflation and tighter financing. Our business continued to be impacted by comparatively soft demand, along with significantly reduced buy and sell rates relative to what we experienced during the pandemic.”
In first-quarter 2023, Expeditors rewarded its shareholders to the tune of $213 million through dividends and buybacks. In the reported quarter, EXPD repurchased 1,959 million shares at an average price of $108.98 per share. It exited the March-end quarter with cash and cash equivalents of $2.35 billion compared with $2.03 billion at the prior-quarter end.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) added to the woes.
Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported a first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33.
ALK’s operating revenues of $2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% due to continued recovery in air-travel demand.
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Expeditors (EXPD) Q1 Earnings Beat, Revenues Miss Estimates
Expeditors International of Washington’s (EXPD - Free Report) first-quarter 2023 earnings of $1.45 per share surpassed the Zacks Consensus Estimate of $1.36. However, the bottom line decreased 29.3% year over year. Total revenues of $2,592.6 million lagged the Zacks Consensus Estimate of $3,149.5 million and decreased 44.4% year over year. Results were hurt by the lackluster demand scenario.
Airfreight tonnage and ocean container volumes decreased 6% and 26%, respectively. Operating income declined 40% to $276 million. Total operating expenses fell 44.9% to $2.32 billion.
Airfreight Services revenues decreased 43.4% year over year to $904.9 million in the first quarter of 2023. Ocean Freight and ocean services revenues fell 64.7% to $697.3 million. Customs Brokerage and other services revenues declined 9.9% year over year to $990.38 million.
Per Jeffrey S. Musser, EXPD’s president and chief executive officer, "Operating conditions during the first quarter of 2023 were very similar to what we experienced in the fourth quarter of 2022, when shippers swiftly adapted to increased consumer caution and slowing demand for their products, while also battling inflation and tighter financing. Our business continued to be impacted by comparatively soft demand, along with significantly reduced buy and sell rates relative to what we experienced during the pandemic.”
In first-quarter 2023, Expeditors rewarded its shareholders to the tune of $213 million through dividends and buybacks. In the reported quarter, EXPD repurchased 1,959 million shares at an average price of $108.98 per share. It exited the March-end quarter with cash and cash equivalents of $2.35 billion compared with $2.03 billion at the prior-quarter end.
Currently, Expeditors carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) added to the woes.
Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported a first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33.
ALK’s operating revenues of $2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% due to continued recovery in air-travel demand.