Expeditors' profit tops estimates on strong air freight, customs services demand
Expeditors International of Washington, Inc. EXPD | 0.00 |
May 5 (Reuters) - Logistics firm Expeditors International of Washington EXPD.N posted a better-than-expected quarterly profit on Tuesday, supported by higher air freight volumes and strong demand for its customs brokerage services, sending its shares up 6.3%.
Companies such as Expeditors benefited as U.S. importers turned to freight and customs broking platforms to help them navigate President Donald Trump's evolving trade policies, which have pushed up compliance costs.
Revenue from the company's broking services segment jumped 17% to $1.15 billion during the first quarter. The customs brokerage service, its biggest segment, contributed 41% to its overall revenue.
Yet, CEO Daniel Wall said the company expects "the freight environment to remain highly unpredictable, as global events and macroeconomic concerns weigh on our customers and our industry."
Expeditors reported a quarterly profit of $1.71 per share, ahead of analysts' average estimate of $1.33 per share, according to data compiled by LSEG.
Air freight revenue grew 14%, helped by higher rates and increased demand from technology customers, while ocean freight revenue dropped 23%, hurt by lower pricing and volumes, particularly in Asia.
The company's overall revenue grew 4.4% to $2.78 billion, beating analysts' expectations of $2.62 billion.
