Expeditors Q2 Revenue Plummets: 'It's A Reverse Of The Covid Pandemic,' CEO Says
Portfolio Pulse from Lekha Gupta
Expeditors International of Washington Inc reported a 51% Y/Y decline in Q2 revenue to $2.24 billion, missing the consensus of $2.88 billion. Airfreight tonnage volume and ocean container volume declined 15% and 13% Y/Y respectively. Operating income fell 51% Y/Y to $248.5 million and EPS of $1.30, down 43% Y/Y, missed the consensus of $1.34. The company returned $1 billion to shareholders through share repurchase and dividend payments in H1 2023. Operating cash flow decreased to $158.4 million from $558.6 million a year ago. The company plans to manage down its headcount to align costs with lower levels of demand.
August 08, 2023 | 5:06 pm
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NEGATIVE IMPACT
Expeditors International reported a significant decline in Q2 revenue, operating income, and EPS, missing consensus estimates. The company plans to reduce its headcount due to lower demand. This news could negatively impact the company's stock price in the short term.
The company's Q2 results were significantly below expectations, with a substantial decline in revenue, operating income, and EPS. Additionally, the company's plan to reduce its headcount indicates a negative outlook due to lower demand. These factors are likely to negatively impact investor sentiment and could lead to a decrease in the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100