Expeditors Issues Earnings Guidance
January 17 2020 - 6:45AM
Business Wire
Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced that preliminary unaudited results for its fiscal fourth
quarter 2019 operating income is expected to fall in a range of
$177 million to $183 million and that diluted earnings attributable
to shareholders per share is expected to range between $0.78 and
$0.81. Estimated diluted net earnings per share has been calculated
using the Company’s effective tax rate of 25.6% for the first nine
months of 2019. The actual effective tax rate for the fourth
quarter of 2019 may differ significantly from this rate and is
dependent on the final calculation of the December 31, 2019 income
tax provision.
“We recognize that our revenue and earnings will be below
prior-year results and analyst consensus estimates,” said Jeffrey
S. Musser, President and Chief Executive Officer. “However, we do
not believe this to be a business model/performance issue and
instead believe it ties more closely to the business environment in
which we are operating. The market conditions that appear to have
had an impact on our results include slowing of various global
economies, trade disputes, and a customer base that is taking
advantage of a market that appears to be changing from a supply and
demand standpoint.
“We’ve seen impacts throughout the year from these market
conditions, but the pace at which these changes occurred
accelerated dramatically in the fourth quarter. We know this
environment will change over time, as it has always has in the
past. Until then, rest assured that we will continue to execute our
services at a high level, be innovative in our business solutions,
and remain aggressive in our approach to maintaining and gaining
new customers. At the same time, we will be steadfast in our
efforts to control growth of our expenses in the same way that our
business model has always supported.”
Expeditors expects to report final fourth quarter 2019 financial
results on Tuesday, February 18, 2020.
Expeditors is a global logistics company headquartered in
Seattle, Washington. The Company employs trained professionals in
176 district offices and numerous branch locations located on six
continents linked into a seamless worldwide network through an
integrated information management system. Services include the
consolidation or forwarding of air and ocean freight, customs
brokerage, vendor consolidation, cargo insurance, time-definite
transportation, order management, warehousing and distribution and
customized logistics solutions.
Disclaimer on Forward-Looking
Statements:
Certain portions of this release contain forward-looking
statements, which are based on certain assumptions and expectations
of future events that are subject to risks and uncertainties,
including our expectations for operating income, earnings
attributable to shareholders, earnings per share, our effective tax
rate and timing of the release of our fourth quarter 2019 financial
results; our belief that the current weakness is market-driven and
a result of ongoing trade disruptions and other conditions noted in
the press release; our ability to contain costs; our ability to
retain existing and attract new customers; and our ability to use
our broad market footprint to take advantage of shifts in trade;
and risk factors and uncertainties detailed in our Annual Report on
Form 10-K for the year ended December 31, 2018 and as updated by
our reports on Form 10-Q, filed with the Securities and Exchange
Commission.
The financial information set forth in this press release
reflects estimates based on information available at this time.
These amounts could differ from actual reported amounts stated in
Expeditor’s Annual Report on Form 10-K for our year ended December
31, 2019, which Expeditors expects to file on February 21, 2020.
Expeditors assumes no obligation to, and does not currently intend
to, update these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200117005065/en/
Jeffrey S. Musser President and Chief Executive Officer (206)
674-3433 Bradley S. Powell Senior Vice President and Chief
Financial Officer (206) 674-3412 Geoffrey Buscher Director -
Investor Relations (206) 892-4510
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