Summary
Expeditors International of Washington, Inc. (EXPD) reported solid financial results for the quarter and six months ended June 30, 2008, demonstrating continued revenue growth across its core service segments. Total revenues saw a significant increase year-over-year, driven by strong performance in airfreight, ocean freight, and customs brokerage services. The company's net revenues also grew, reflecting effective management of transportation expenses and a focus on yielding higher margins. Profitability improved, with operating income and net earnings showing positive trends, indicating operational efficiency and effective cost management despite increased overhead, particularly legal expenses related to ongoing investigations. Despite facing significant legal challenges and ongoing investigations by the DOJ and the European Commission, EXPD maintained a strong liquidity position with substantial cash and cash equivalents. The company continued its share repurchase program and declared dividends, signaling confidence in its financial health and commitment to shareholder returns. Management remains focused on its unique global culture, employee development, and system solutions as key drivers for sustained growth and mitigating risks in the competitive global logistics industry. The company anticipates continued capital expenditures to support its expansion and operational capabilities.
Financial Highlights
26 data points| Revenue | $1.45B |
| Operating Expenses | $1.34B |
| Operating Income | $112.97M |
| Interest Expense | $75K |
| Net Income | $71.25M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 213.28M |
| Shares Outstanding (Diluted) | 220.52M |
Key Highlights
- 1Total revenues increased to $1.45 billion for Q2 2008 and $2.76 billion for the first six months of 2008, up from $1.26 billion and $2.38 billion in the prior year periods, respectively.
- 2Net revenues also showed healthy growth, reaching $397.3 million for Q2 2008 and $771.7 million for the first six months of 2008, up from $354.6 million and $688.7 million in the prior year periods.
- 3Net earnings increased to $71.2 million for Q2 2008 and $137.7 million for the first six months of 2008, compared to $65.5 million and $124.8 million in the prior year periods.
- 4Operating income improved to $113.0 million for Q2 2008 and $218.5 million for the first six months of 2008, up from $101.7 million and $196.3 million in the respective prior year periods.
- 5The company maintained a strong liquidity position with $703.5 million in cash and cash equivalents as of June 30, 2008.
- 6Significant legal and related expenses of $5 million and $7 million were incurred for the three and six-month periods, respectively, primarily due to ongoing investigations by the DOJ and EC.
- 7Expeditors continued its stock repurchase program, buying back 1,087,764 shares during the quarter, and maintained its dividend payments.