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Expeditors International Of Washington - 2017 10-K Review

Nick Perez profile picture
Nick Perez


  • Company provides a full suite global logistics services by acting as a third-party logistics provider.
  • Revenue growth driven by customers focus on improving supply-chain efficiency, reducing overall logistics.
  • Diluted EPS improved 14% largely due to improved financial performance.
  • Exposure to growth regions including LATAM, Europe, and Asia.

Business Overview

Expeditors International of Washington, Inc. (NASDAQ:EXPD) provides a full suite of global logistics services, offering customers a seamless international network of people and integrated information systems to support the movement and strategic positioning of goods. As a third-party logistics provider, EXPD purchases cargo space from carriers (including airlines and ocean shipping lines) on a volume basis and resell that space to their customers.

The company provides a broad range of customer solutions, such as order management, time-definite transportation, warehousing and distribution, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other customized logistics solutions.

Expeditors' primary services include:

  • Airfreight Services
  • Ocean Freight and Ocean Services
  • Customs Brokerage and Other Services

Airfreight Services

Airfreight services accounted for approximately 42%, 40%, and 41% of Expeditors' total revenues and 32%, 32%, and 34% of total net revenues in 2017, 2016, and 2015, respectively. When performing airfreight services, EXPD typically acts either as a freight consolidator or as an agent for the airline that carries the shipment. When acting as a freight consolidator, the company purchases cargo space from airlines on a volume basis and resell that space to its customers at lower rates than it could obtain directly from airlines on an individual shipment. Whether acting as a consolidator or agent, EXPD offers expertise for optimum routing, familiarity with local business practices, knowledge of export and import documentation and procedures, the ability to arrange for ancillary services, and assistance with space availability in periods of high demand.

Ocean Freight and Ocean Services

Ocean freight services accounted for approximately 30%, 32%, and 33% of Expeditors' total revenues and 24%, 25%, and 25% of total net revenues in 2017, 2016, and 2015, respectively. EXPD operates Expeditors International Ocean, Inc. (EIO), an ocean transportation intermediary, which specializes in ocean freight services in most major trade lanes in the world. EIO also provides service, on a smaller scale, to and from

This article was written by

Nick Perez profile picture
I am a long only stock investor. I look for companies that are under appreciated and have a catalyst to realize a more premium valuation. I take a bottom-up up approach by analyzing the financial statements. I can be found on Twitter @NPerezResearch

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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