Expeditors profit and revenue rise above expectations, as all business segments top forecasts

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Expeditors International of Washington Inc. reported Tuesday earnings and revenue that rose from a year ago, as shipping volumes started to recover, and beat expectations. The airfreight and ocean freight company’s stock was still inactive in premarket trading. Net income grew to $191.3 million, or $1.12 a share, from $160.2 million, or 92 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 97 cents. Revenue increased 19T to $2.46 billion, above the FactSet consensus of $2.36 billion. Airfreight services revenue rose 52.8% to $1.09 billion, to beat the FactSet consensus of $1.05 billion; ocean freight and ocean services revenue increased 4.7% to $612.9 million, above expectations of $547.3 million; and customers brokerage and other revenue slipped 2.0% to $758.4 million, but topped expectations of $717.9 million. “Similar to Q2, the pandemic caused an increase in demand for certain goods at the same time that air capacity remained tight due to travel restrictions and the limited schedule of domestic and international passenger flights,” said Chief Executive Jeffrey Musser. “While airfreight buy and sell rates were generally lower in our third quarter than the extremes we experienced in the second quarter, they remained historically elevated and highly unpredictable due to ongoing supply/demand imbalances.” The stock has climbed 13.6% year to date, while the Dow Jones Transportation Average has tacked on 2.9% and the Dow Jones Industrial Average has lost 5.7%.
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