Summary
Expeditors International of Washington, Inc. (EXPD) reported a solid first quarter for 2010, reflecting a recovery in global trade volumes following the economic downturn of 2009. Total revenues increased by 31.7% year-over-year to $1.2 billion, driven by a significant rebound in airfreight services, which saw tonnage increase by 41%. Net earnings attributable to shareholders rose to $61.2 million, or $0.28 per diluted share, up from $59.3 million, or $0.27 per diluted share, in the prior year quarter. While volumes are improving, the company is experiencing margin pressure. Net revenue per kilo for airfreight and net revenue per container for ocean freight consolidation decreased compared to the prior year's strong first quarter, which benefited from favorable spot market buying opportunities. This was due to increased carrier capacity limitations and rising buy rates as demand recovered. Despite these pressures, the company's customs brokerage and other services segment showed robust growth. Management remains focused on its core strategy of organic growth, superior customer service, and employee development, while navigating ongoing legal proceedings related to alleged anti-competitive behavior.
Financial Highlights
46 data points| Revenue | $1.20B |
| Gross Profit | $361.82M |
| Operating Expenses | $1.10B |
| Operating Income | $100.54M |
| Interest Expense | $87K |
| Net Income | $61.25M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 212.19M |
| Shares Outstanding (Diluted) | 216.63M |
Key Highlights
- 1Total revenues surged 31.7% year-over-year to $1.2 billion, indicating a recovery in global trade.
- 2Airfreight services revenue increased significantly, with tonnage up 41%, demonstrating a strong rebound in demand.
- 3Net earnings attributable to shareholders grew to $61.2 million, an increase from $59.3 million in the prior year period.
- 4Diluted EPS rose slightly to $0.28 from $0.27, reflecting the overall business improvement.
- 5Customs brokerage and other services net revenues increased 13%, highlighting strength in this segment.
- 6The company reported a substantial cash position of $1.04 billion in cash and cash equivalents, with no long-term debt.
- 7Expeditors is actively defending against ongoing investigations and litigation related to alleged anti-competitive practices, which pose a potential material risk.