Expeditors misses profit estimates on gloomy freight demand

Expeditors International of Washington

07/11/2023 14:18

Nov 7 (Reuters) - Logistics services provider Expeditors
International of Washington  EXPD.O  missed estimates for
third-quarter profit on Tuesday due to a deceleration in freight
demand, sending its shares down 8.5% in premarket trading.
    The logistics sector has had to grapple with a reduction in
e-commerce activity compared to the peak levels seen during the
pandemic, as people reverted to their usual shopping habits and
redirected their expenses towards experiences like travel and
dining.
    Expeditors' adjusted profit for the quarter ended Sept. 30
came in at $1.24 per share, compared with analysts' average
expectations of $1.28 per share, according to LSEG data.  
    "The shipping industry has been undergoing a great unwinding
of so many of the drivers that led up to the massive mismatch of
supply and demand that occurred during the pandemic," CEO
Jeffrey Musser said.
    Airfreight tonnage volume decreased 14% and ocean container
volume decreased 15% in the reported quarter.
    Total revenues fell nearly 50% to $2.19 billion, compared
with analysts' estimates of $2.31 billion.

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Shailesh
Kuber)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))