Expeditors International Reports Strong Q4 2024 Earnings
Expeditors International's fourth quarter performance exceeded analyst expectations across all metrics, with revenue and profits outperforming estimates.
Revenue and Profits Surge
Revenue surged by 30% to $2.95 billion year-over-year. Operating income jumped by 51%, and net earnings rose by 49%. These figures surpassed analysts' projections, according to SeekingAlpha, with GAAP earnings per share of $2.68 exceeding expectations by 24 cents and revenue surpassing forecasts by $190 million.
Factors Driving Growth
CEO and President Jeffrey Musser attributed the strong performance to several factors. Expeditors "moved more air tonnage than we have since Q4 2021," with demand from Asia fueling rate increases and segment growth. Airfreight volumes increased by 11% year-over-year, while ocean freight rose by 14%.
Disruptions in the Red Sea diverted traffic, which further increased rates and tightened capacity, contributing to overall volume growth.
Tariff Wars and Uncertainty
Despite its central role in international trade, Expeditors acknowledged limited visibility going forward. CEO Musser expressed concerns about potential impacts of trade policy changes, including the elimination of de minimis exemptions.
Stock Performance and Staffing
Expeditors stock has experienced mixed performance, declining by 5% over the past three months but gaining 3.6% in the past month. Market reaction to the earnings report was muted, with shares rising by 0.25% after the market opened.
Unlike peers who have laid off employees, Expeditors increased its workforce to 18,917 from 18,452 in the fourth quarter. This reflects the company's growth in air and ocean shipments and increased customs declarations.