Q3 22: Expeditors blows away estimates

© Alexlmx

Just as expected… well, surprised?

(Read “Tuesday limelight“, in case you missed our mild, ahead of the tape session.)

Expeditors announced quarterly numbers today that were materially above estimates for Q3 22.

(The full release is here.)

Earnings per share (EPS) came in at $2.54, on a fully diluted basis, 27% above consensus.

That EPS reading also implies a 22% rise against Q3 comparable figures from last year.

Revenues were $150m higher than expected, too, according to Seeking Alpha.

However, air freight and ocean freight volumes fell, respectively, 13% and 10%, testifying to a very challenging market for freight forwarders.

“We continued to perform at a very high level, generating another strong quarter of financial performance and cash flow,” CEO Jeff Musser said in his prepared remarks.

He added:

“We accomplished this despite uncertain economic conditions that resulted in declines in tonnage and volumes, reductions in both buy and sell rates, and an overall rebalancing of capacity in the logistics freight markets. These conditions have continued in recent weeks and we believe that inflation, high energy costs, and government fiscal and monetary measures will continue to exert pressure on global supply chains. Additionally, many shippers are now looking to shrink retail inventories that were overstocked earlier in the year in reaction to COVID-related supply chain disruptions.”

Reaction:

Stock little changed in pre-market trade on thin volumes. US futures up between 0.3% (Dow) and 0.7% (Nasdaq Composite).

The shares rose to $99.8 (+4.34%) in early trade.

Intra-day high at 10.05 EST: $102.05.

PS: Stock up to $105 (+9.7%) @ 12.25 pm (EST).