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Expeditors International of Washington’s (EXPD - Free Report) third-quarter 2023 earnings of $1.16 per share missed the Zacks Consensus Estimate of $1.25. The bottom line plunged 54.3% year over year due to volume woes. Total revenues of $2,190 million lagged the Zacks Consensus Estimate of $2,323.7 million and declined 49.8% year over year.
Airfreight tonnage and ocean container volumes dipped 14% and 15%, respectively. Operating income was down 59% to $216 million. Total operating expenses fell 48.5% to $1.97 billion.
Airfreight Services revenues tumbled 51.5% year over year to $724.3 million in the third quarter. Ocean freight and ocean services revenues reduced 66.7% to $560.3 million. Customs Brokerage and other services revenues shrank 24.3% year over year to $905.4 million.
Per EXPD’s president and chief executive officer Jeffrey S. Musser, “As expected, the deceleration in demand that we have seen since the second half of 2022 continued in the comparable third quarter of 2023. Additionally, rates generally remained soft while capacity exceeded demand in most lanes.”
Expeditors International of Washington, Inc. Price, Consensus and EPS Surprise
In the third quarter of 2023, Expeditors repurchased 2.6 million shares at an average price of $116.29 per share. EXPD exited the September quarter with cash and cash equivalents of $1.64 billion compared with $2.03 billion at the end of 2022.
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2023 earnings per share of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 earnings per share (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 earnings per share of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
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Expeditors (EXPD) Q3 Earnings & Revenues Miss, Decline Y/Y
Expeditors International of Washington’s (EXPD - Free Report) third-quarter 2023 earnings of $1.16 per share missed the Zacks Consensus Estimate of $1.25. The bottom line plunged 54.3% year over year due to volume woes. Total revenues of $2,190 million lagged the Zacks Consensus Estimate of $2,323.7 million and declined 49.8% year over year.
Airfreight tonnage and ocean container volumes dipped 14% and 15%, respectively. Operating income was down 59% to $216 million. Total operating expenses fell 48.5% to $1.97 billion.
Airfreight Services revenues tumbled 51.5% year over year to $724.3 million in the third quarter. Ocean freight and ocean services revenues reduced 66.7% to $560.3 million. Customs Brokerage and other services revenues shrank 24.3% year over year to $905.4 million.
Per EXPD’s president and chief executive officer Jeffrey S. Musser, “As expected, the deceleration in demand that we have seen since the second half of 2022 continued in the comparable third quarter of 2023. Additionally, rates generally remained soft while capacity exceeded demand in most lanes.”
Expeditors International of Washington, Inc. Price, Consensus and EPS Surprise
Expeditors International of Washington, Inc. price-consensus-eps-surprise-chart | Expeditors International of Washington, Inc. Quote
In the third quarter of 2023, Expeditors repurchased 2.6 million shares at an average price of $116.29 per share. EXPD exited the September quarter with cash and cash equivalents of $1.64 billion compared with $2.03 billion at the end of 2022.
Currently, Expeditors carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2023 earnings per share of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 earnings per share (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 earnings per share of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.