Shares of Expeditors International of Washington took a hit on Tuesday as the company reported a significant drop in sales and missed profit estimates in the fourth quarter.
Stock Plummets
The stock fell 7.4% to $114.96 in recent trading, marking its largest percentage drop since May 2022. Year-to-date, shares are down approximately 9.6%.
Revenue Decline
Expeditors International, headquartered in Seattle, saw its revenue decrease by 34% to $2.278 billion, falling short of analysts' expectations of $2.286 billion.
Profit Misses Estimates
The company reported a profit of $158.7 million, or $1.09 per share, for the quarter ended Dec. 31. This was lower than the year-ago profit of $219.3 million, or $1.38 per share. Analysts had anticipated a profit of $1.23 per share.
CEO's Perspective
CEO Jeffrey Musser cited market uncertainty stemming from conflicts in the Middle East and on the Red Sea as challenges faced by the company. He mentioned ongoing uncertainty regarding volumes and capacity as shippers strive to manage excess inventory levels.
Financial Plans
Finance Chief Bradley Powell revealed plans to focus on aligning headcount and overhead expenses with reduced levels of transactions and volumes after making headcount cuts throughout 2023.
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