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Expeditors International Of Washington: An All-Around For Customers And Investors?

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The Dividend Guy


  • One of the best quarter in the company’s history, with a 39% EPS increase.
  • Betting on technology might be the key to success for the transportation business.
  • A rocky road lays ahead with intensive competition showing up.

Expeditors International of Washington (NASDAQ:EXPD) has observed a healthy growth during the last few years. The growth can be partly due to globalization and ease of doing business all around the world, but one does not stand long in markets with how competitive the transportation industry is if they cannot provide a value-added service. This is exactly why EXPD has been around for 40 years, stacking an impressive 24 years of dividend increase to their shareholders.

Understanding the Business

Founded in 1979, Expeditors International of Washington provides its customers an all-around transportation and logistics service. From regular day-to-day shipments, to one of a kind needs, EXPD is up for the task. The company's primary services are split into 3 categories: Airfreight Services, Ocean Freight and Ocean Services and Customs Brokerage and Other Services. In 2017, 42% of their $6.92B revenue came from the Airfreight sector. 30% was earned by the Ocean sector and the remaining 28% by Customs Brokerage and Other Services. Although transportation is their main line of business, EXPD also offers supply chain solutions as well as warehousing and distribution.

The company now has regional offices around the world, having business partners in the Americas, Asia, Europe, Africa, India and the Middle East. At the closing of 2017, EXPD employed over 16,500 workers around 177 offices.

Growth Vectors

Source: Ycharts

As the company is evolving in an ever-changing, fast-paced world, combined with tighter deadlines each and every day, EXPD is relying on an upgraded technology in order for them to keep up with those requirements. Artificial intelligence and machine learning operations have become a critical aspect of their business, with efficiency being the main targeted goal.

While past growth was mostly organic, from knowledge-based operations and experience, the company has in the past acquired other businesses in order to grow

Source: Ycharts

Source: Ycharts

Source: Ycharts

This article was written by

The Dividend Guy profile picture
My name is Mike and I’m the author of The Dividend Guy Blog & The Dividend Monk along with the owner and portfolio manager here at Dividend Stocks Rock (DSR). I earned my bachelor degree in finance-marketing, own a CFP title along with an MBA in financial services. Besides being a passionate investor, I’m also happily married with three beautiful children. I started my online venture to educate people about investing and to be able to spend more time with my family. I started my career in the financial industry back in 2003. I earned several promotions along with a good pile of diplomas. I had lots of fun working with clients in private banking for half a decade, but thought I could do more with my life. In 2016, I decided to take a leap of faith and left everything behind to travel across North America and Central America with my family. We drove through nine countries and stayed three months in Costa Rica before returning home. This was an eye-opening adventure that led me in 2017 to quit my job in the financial industry and pursue my dream; helping others with their personal finance through my investing websites. You just found the reason why I quit my suit & tie job!

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