Overview

• US logistics firm's Q1 revenue rose 4% yr/yr, beating analyst expectations

• Diluted EPS for Q1 increased 16% to $1.71

• Company returned $288 mln to shareholders via share repurchases

Outlook

• Company expects freight environment to remain highly unpredictable due to global events and macroeconomic concerns

• Expeditors anticipates continued volatility in air market and weak pricing in ocean market

• Company expects robust demand for customs brokerage services due to tariff-driven complexity and global trade dynamics

Result Drivers

• AIRFREIGHT MARGINS - Higher airfreight gross margins driven by increased per-kilo profitability and strong demand from technology customers, with some disruption from Middle East conflict

• OCEAN FREIGHT DECLINE - Ocean freight revenues and profitability fell due to global capacity imbalances and lower export volumes from Asia, partly offset by cost control

• CUSTOMS BROKERAGE GROWTH - Double-digit revenue and profit growth in customs brokerage and related services, driven by higher entry volumes, tariff complexity, and demand from technology clients

Company press release: ID:nBw4c1cCda

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$2.80 bln	$2.62 bln (11 Analysts)
Q1 EPS		$1.71
Q1 Net Income		$230 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy."

• Wall Street's median 12-month price target for Expeditors International of Washington Inc is $142.00, about 1.6% above its May 4 closing price of $139.71

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 27 three months ago

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