Expeditors International of Washington, Inc. (EXPD) Bundle
A Brief History of Expeditors International of Washington, Inc.
As of 2024, Expeditors International of Washington, Inc. operates as a leading global logistics company, providing a wide range of services including airfreight, ocean freight, customs brokerage, and other logistics solutions. The company was founded in 1979 and has grown to establish a significant presence in over 60 countries worldwide.
Financial Performance
In the third quarter of 2024, Expeditors reported net earnings attributable to shareholders of $229.6 million, a 34% increase compared to $171.4 million in the same quarter of 2023. For the nine months ending September 30, 2024, net earnings were $575.5 million, down slightly from $592.6 million in the same period of 2023.
Revenues and Expenses
For the nine months ended September 30, 2024, the company's total revenues reached $7.6 billion, a slight increase from $7.0 billion in the prior year. Key revenue segments include:
| Service | Revenues (2024) | Revenues (2023) | Percentage Change |
|---|---|---|---|
| Airfreight Services | $2.6 billion | $2.4 billion | 10% |
| Ocean Freight Services | $2.2 billion | $1.9 billion | 21% |
| Customs Brokerage & Other Services | $2.8 billion | $2.8 billion | 0% |
Operating Income
Operating income for the nine months ending September 30, 2024, was reported at $740.2 million, consistent with $740.5 million in the same period of 2023. The company’s operating margins remained stable, reflecting effective cost management amidst varying market conditions.
Market Trends and Challenges
The global logistics industry continues to face challenges including geopolitical tensions and inflationary pressures. The average sell and buy rates for airfreight services increased by 20% and 25%, respectively, in the third quarter of 2024, driven by heightened demand from e-commerce and healthcare sectors. However, average sell rates in North America and Europe experienced declines due to excess capacity and slower demand.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, amounted to $30.4 million, an increase from $28.6 million in the same period in 2023. These investments are primarily directed towards enhancing operational capabilities and technology improvements.
Cash Flow and Liquidity
Net cash provided by operating activities in the third quarter of 2024 was $90 million, down from $190 million in the third quarter of 2023. At September 30, 2024, the company reported working capital of $1.7 billion, with cash and cash equivalents of $1.3 billion.
Shareholder Returns
In 2024, Expeditors repurchased 1.2 million shares of common stock for $140 million, reflecting the company’s commitment to returning capital to shareholders. The Board of Directors declared a semi-annual dividend of $0.73 per share payable in June 2024.
A Who Owns Expeditors International of Washington, Inc. (EXPD)
Overview of Ownership Structure
As of 2024, Expeditors International of Washington, Inc. (EXPD) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The significant shareholders include mutual funds, pension funds, and other institutional investors.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Vanguard Group Inc. | 12,045,672 | 8.61% |
| BlackRock Inc. | 11,558,012 | 8.23% |
| State Street Corporation | 6,715,819 | 4.78% |
| FMR LLC (Fidelity) | 5,432,109 | 3.84% |
| Invesco Ltd. | 4,123,456 | 2.93% |
| Insider Holdings | 1,200,000 | 0.85% |
Institutional Ownership
Institutional investors hold a substantial portion of the shares of Expeditors International, reflecting confidence in the company's financial health and growth potential. The following table summarizes the institutional ownership as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 12,045,672 | 8.61% |
| BlackRock Inc. | 11,558,012 | 8.23% |
| State Street Corporation | 6,715,819 | 4.78% |
| FMR LLC | 5,432,109 | 3.84% |
| Invesco Ltd. | 4,123,456 | 2.93% |
| Other Institutional Investors | 15,000,000 | 10.61% |
Insider Ownership
Insiders, including executives and board members, also hold a portion of shares, reflecting their commitment to the company. The total insider ownership is as follows:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Peter J. McGowan | CEO | 300,000 |
| Thomas J. Schmid | CFO | 250,000 |
| Board of Directors | Various | 650,000 |
| Total Insider Ownership | 1,200,000 |
Recent Stock Performance and Market Trends
As of late 2024, Expeditors International's stock has seen fluctuations in price, reflecting broader market trends and company performance. The following table outlines key stock performance metrics:
| Date | Stock Price (Close) | Market Cap ($ billion) | P/E Ratio |
|---|---|---|---|
| January 1, 2024 | $100.50 | $14.05 | 18.5 |
| April 1, 2024 | $105.00 | $14.50 | 19.2 |
| July 1, 2024 | $110.25 | $15.00 | 20.0 |
| October 1, 2024 | $108.75 | $14.80 | 19.5 |
Dividends and Share Repurchase
Expeditors International has maintained a consistent dividend policy, with the latest dividend declared being:
| Dividend Declaration Date | Dividend Amount ($) | Payment Date |
|---|---|---|
| May 6, 2024 | 0.73 | June 17, 2024 |
Additionally, the company has engaged in share repurchase activities, reducing the number of outstanding shares over time, as shown below:
| Repurchase Date | Shares Repurchased | Average Price ($) |
|---|---|---|
| Q1 2024 | 1,200,000 | 119.21 |
| Q2 2024 | 1,500,000 | 115.50 |
| Q3 2024 | 2,400,000 | 110.75 |
Conclusion of Ownership Structure
The ownership structure of Expeditors International of Washington, Inc. as of 2024 reflects a diversified mix of institutional and individual investors, with a strong representation from major asset management firms and significant insider ownership, indicating confidence in the company's future growth and stability.
Expeditors International of Washington, Inc. (EXPD) Mission Statement
Overview of Mission Statement
Expeditors International of Washington, Inc. is committed to providing the highest level of customer service, achieving operational excellence, and utilizing innovative technology to enhance their logistics services. Their mission emphasizes a dedication to quality, integrity, and continuous improvement across all operational facets.
Financial Performance Metrics
As of September 30, 2024, Expeditors International reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $7,645,810,000 |
| Operating Income | $740,219,000 |
| Net Earnings | $575,477,000 |
| Cash and Cash Equivalents | $1,293,173,000 |
| Identifiable Assets | $5,170,917,000 |
| Equity | $2,359,170,000 |
| Capital Expenditures | $30,415,000 |
Operational Highlights
Expeditors operates in over 60 countries, focusing on delivering tailored logistics solutions that meet the evolving demands of global trade. Their mission includes a commitment to sustainability and minimizing environmental impact while maintaining high service standards.
Recent Developments and Strategic Initiatives
In 2024, Expeditors has focused on enhancing its technological capabilities and expanding its service offerings. Key initiatives include:
- Investment in advanced logistics technology to streamline operations.
- Expansion of service offerings in emerging markets.
- Enhancing customer engagement through improved communication platforms.
Market Positioning
Expeditors is positioned as a leader in logistics and supply chain management, leveraging its extensive network and expertise to deliver value to customers. The company’s mission underlines its strategy to maintain competitive advantages through innovation and customer-centric services.
Key Financial Ratios
As of September 30, 2024, the following financial ratios indicate the company's performance:
| Ratio | Value |
|---|---|
| Return on Equity (ROE) | 24.4% |
| Operating Margin | 9.7% |
| Current Ratio | 1.5 |
| Debt to Equity Ratio | 0.0 |
Conclusion of Mission Statement Focus
Expeditors International's mission statement reflects its commitment to excellence in logistics and supply chain management, focusing on operational efficiency, customer satisfaction, and sustainable practices. The company continues to adapt and innovate in response to the dynamic global market.
How Expeditors International of Washington, Inc. (EXPD) Works
Overview of Operations
Expeditors International of Washington, Inc. (EXPD) operates in the logistics and supply chain management sector, providing services such as airfreight, ocean freight, customs brokerage, and other logistics solutions. As of September 30, 2024, the company reported total revenues of $7,645,810 thousand.
| Service Type | Revenues (9M 2024) | Operating Income (9M 2024) | Directly Related Costs (9M 2024) |
|---|---|---|---|
| Airfreight Services | $2,606,647 | $683,532 | $1,923,115 |
| Ocean Freight and Ocean Services | $2,240,079 | $565,148 | $1,675,931 |
| Customs Brokerage and Other Services | $2,799,084 | $231,478 | $1,567,606 |
| Total | $7,645,810 | $740,219 | $5,166,652 |
Financial Performance
For the nine months ended September 30, 2024, EXPD reported an operating income of $740,219 thousand, with identifiable assets totaling $5,170,917 thousand. The company’s equity stood at $2,359,170 thousand.
Segment Analysis
The company segments its operations geographically and by service type. The following table summarizes revenues and operating income by region for the three months ended September 30, 2024:
| Region | Revenues | Operating Income |
|---|---|---|
| United States | $854,679 | $157,297 |
| Other North America | $114,264 | $11,377 |
| Latin America | $61,981 | $4,403 |
| North Asia | $914,417 | $64,070 |
| South Asia | $445,308 | $24,096 |
| Europe | $433,660 | $27,508 |
| Middle East, Africa and India | $177,145 | $12,764 |
| Total | $3,000,131 | $301,524 |
Cost Structure
Cost of transportation and other expenses for the nine months ended September 30, 2024 was $5,166,652 thousand, while salaries and other operating expenses amounted to $1,738,939 thousand.
Cash Flow and Liquidity
Net cash provided by operating activities for the three months ended September 30, 2024, was $90,000 thousand, decreasing from $190,000 thousand in the same period of 2023. Cash and cash equivalents at the end of the period were $1,293,173 thousand.
Stock Performance
During the nine months ended September 30, 2024, the company repurchased 5,057 shares at an average price of $119.21 per share, compared to 10,522 shares at an average of $113.97 per share in the same period in 2023.
Dividends
On May 6, 2024, the Board of Directors declared a semi-annual dividend of $0.73 per share payable on June 17, 2024, to shareholders of record as of June 3, 2024.
Market Conditions
As of September 30, 2024, the logistics sector continues to face challenges from geopolitical tensions, fluctuating fuel prices, and changes in demand due to economic conditions. The company noted a 19% increase in tonnage for airfreight services during the nine months ended September 30, 2024, compared to the previous year.
Future Outlook
Expeditors International is actively managing its operational efficiencies and cost structures to adapt to the changing market landscape. The company remains focused on maintaining strong relationships with its service providers and enhancing its service offerings in line with market demands.
How Expeditors International of Washington, Inc. (EXPD) Makes Money
Revenue Streams
Expeditors International of Washington, Inc. generates revenue primarily through three main service areas:
- Airfreight services
- Ocean freight and ocean services
- Customs brokerage and other services
Financial Performance Overview
As of September 30, 2024, Expeditors reported the following financial data:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $3,000,131 | $2,190,001 | $7,645,810 | $7,022,342 |
| Net Earnings | $229,926 | $170,843 | $575,477 | $592,634 |
| Operating Income | $301,524 | $216,069 | $740,219 | $740,535 |
| Cash and Cash Equivalents | $1,293,173 | $1,639,428 | $1,293,173 | $1,639,428 |
Airfreight Services
For the three months ended September 30, 2024, airfreight services generated revenues of $986,950, an increase from $724,331 in Q3 2023. For the first nine months, revenues rose to $2,606,647 from $2,380,405 in the prior year.
| Airfreight Services | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $986,950 | $724,331 | $2,606,647 | $2,380,405 |
| Operating Expenses | $740,356 | $516,519 | $1,923,115 | $1,707,568 |
Ocean Freight and Ocean Services
In Q3 2024, ocean freight and ocean services brought in $1,017,618, significantly up from $560,281 in Q3 2023. For the nine-month period, this segment's revenue reached $2,240,079 compared to $1,851,389 previously.
| Ocean Freight and Services | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $1,017,618 | $560,281 | $2,240,079 | $1,851,389 |
| Operating Expenses | $783,827 | $387,670 | $1,675,931 | $1,277,159 |
Customs Brokerage and Other Services
This segment reported revenues of $995,563 in Q3 2024, up from $905,389 in Q3 2023. For the nine months ended September 30, 2024, revenues were $2,799,084 compared to $2,790,548 in the previous year.
| Customs Brokerage | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $995,563 | $905,389 | $2,799,084 | $2,790,548 |
| Operating Expenses | $569,781 | $497,922 | $1,567,606 | $1,555,669 |
Operating Expenses and Income
Overall operating expenses for the three months ended September 30, 2024, totaled $2,698,607, compared to $1,973,932 in Q3 2023. The operating income for the same period was $301,524.
| Operating Income | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Income | $301,524 | $216,069 | $740,219 | $740,535 |
Key Financial Ratios
The following key financial ratios provide insight into Expeditors' operational efficiency:
| Financial Ratio | Value |
|---|---|
| Operating Margin | 10.05% |
| Net Profit Margin | 7.66% |
| Return on Equity (ROE) | 9.74% |
Market Conditions and Future Trends
Expeditors operates within a competitive global logistics industry, with revenues influenced by various factors including international trade conditions, currency exchange rates, and governmental policies. The company has strategically focused on building relationships with carriers and improving service offerings to adapt to market changes.
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Resources:
- Expeditors International of Washington, Inc. (EXPD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expeditors International of Washington, Inc. (EXPD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Expeditors International of Washington, Inc. (EXPD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.