Summary
Expeditors International of Washington, Inc. (EXPD) reported strong top-line growth in the third quarter and first nine months of 2018 compared to the prior year, with total revenues increasing by 16% and 18% respectively. This growth was driven by solid performance across all segments, particularly airfreight services and customs brokerage and other services. Net revenues, a key performance indicator for the company, also saw significant increases, demonstrating effective margin management. The company's profitability improved, with net earnings attributable to shareholders up by 35% for the quarter and 36% for the nine-month period, translating into substantial earnings per share growth.
Financial Highlights
43 data pointsBeta
Financial Statements
Beta
| Revenue | $2.09B |
| Operating Expenses | $1.89B |
| Operating Income | $203.15M |
| Net Income | $162.69M |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.92 |
| Shares Outstanding (Basic) | 173.39M |
| Shares Outstanding (Diluted) | 177.17M |
Key Highlights
- 1Total revenues increased by 16% to $2.09 billion for the three months ended September 30, 2018, and by 18% to $5.90 billion for the nine months ended September 30, 2018, compared to the prior year periods.
- 2Net revenues, a non-GAAP measure reflecting the company's core margin, grew by 10.4% for the quarter and 14.8% for the nine-month period.
- 3Airfreight services showed robust growth, with revenues up 13% for the quarter and 17% for the nine months, driven by higher sell rates and tonnage growth.
- 4Customs brokerage and other services experienced substantial revenue increases of 33% for the quarter and 35% for the nine months, fueled by higher volumes.
- 5Net earnings attributable to shareholders rose significantly by 35% to $162.7 million for the quarter and by 36% to $439.0 million for the nine months.
- 6Diluted earnings per share increased to $0.92 for the quarter (from $0.66 in Q3 2017) and to $2.46 for the nine months (from $1.77 in the prior year).
- 7The company maintained a strong liquidity position with $990.6 million in cash and cash equivalents and generated substantial operating cash flow of $470.7 million for the nine months ended September 30, 2018.
Frequently Asked Questions
Revenue growth was driven by increases across all segments. Airfreight services saw higher sell rates and tonnage growth. Customs brokerage and other services benefited from higher volumes in brokerage, road freight, and distribution. Ocean freight and ocean services also saw growth, primarily from increased container volume.
Profitability significantly improved. Net earnings attributable to shareholders increased by 35% for the three-month period and 36% for the nine-month period, leading to a substantial rise in diluted earnings per share.
The company reported a strong liquidity position with substantial cash and cash equivalents and healthy operating cash flow. Management believes its current cash position and operating cash flows are sufficient to meet its capital and liquidity requirements for the foreseeable future. The company has no long-term debt.
Yes, the company adopted Topic 606 'Revenue from Contracts with Customers' effective January 1, 2018, which involved a retrospective adjustment to retained earnings and the recognition of deferred contract costs and contract liabilities. Additionally, the company is preparing to adopt new lease accounting standards in 2019.