On Tuesday, Expeditors International of Washington, Inc. (NYSE:EXPD) announced fourth-quarter earnings per share of $1.68, beating the street view of $1.41.
Quarterly sales of $2.955 billion (+30% year over year) outpaced the analyst consensus estimate of $2.809 billion.
Airfreight services revenues expanded to $1.063 billion from $866.122 million, and Ocean freight and ocean services revenues rose to $908.435 million from $511.854 million.
“Strong demand from Asia, along with heavy de minimis-driven e-commerce business and increased demand for technology products, limited access to air capacity,” said Jeffrey S. Musser, President and Chief Executive Officer.
Operating income in the quarter under review jumped 51% to $301.104 million.
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“At the same time, we believe ocean capacity was partially hampered by front-loading, as shippers scrambled to limit disruptions from potential port labor actions, and by longer transits as carriers continued to avoid the Red Sea,” Musser adds.
The company exited the quarter with cash and equivalents worth $1.148 billion.
Expeditors returned $1.1 billion to shareholders through stock repurchases and dividends in 2024, the third consecutive year the company returned more than $1 billion of capital to shareholders.
Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “Given the growth in air and ocean shipments, increased customs declarations and other business activity, we carefully added headcount in certain important areas during the quarter, while continuing to increase profitability, growing operating income by 51% from a year ago.”
Price Action: EXPD shares are trading higher by 2.01% to $115.93 at last check Tuesday.
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