EXPD - Expeditors slumps as weaker freight rates outlook lower volumes disappoint market

• Expeditors International of Washington ( NASDAQ: EXPD ) slides 5% , Tuesday, after the company reported top-line miss in its second quarter's results .
• Revenue of $4.6B (+27.8% Y/Y) missed analysts estimate by $100M.
• By segment: Airfreight Services, $1.60B (+5.26% Y/Y); Ocean freight and ocean services, $1.76B (+60% Y/Y); and Customs brokerage and other services, $1.24B (+25% Y/Y).
• Operating Income increased 23% to $506M.
• Airfreight tonnage volume and ocean container volume decreased 17% and 11%, respectively.
• "During the second quarter we continued the recovery from the February cyber-attack and re-established digital connections with many of our customers, which limited our ability to move cargo through our systems. We also experienced a significant drop in volumes in China due to the various lockdowns that resulted in factories not operating and cargo being unavailable to ship," said President and CEO Jeffrey S. Musser.
• GAAP EPS of $2.27 beats by $0.13.
• Forward looking statement: "Given the current economic uncertainty and government actions aimed at taming inflation, along with the ongoing challenges throughout the global supply chain, we believe that rates will continue to be highly volatile at least through the end of the year, while generally continuing to trend downwards from their highs over the longer-term," said SVP and CFO Bradley S. Powell.
• At Buy rating, Seeking Alpha author Patrick Doyle writes: Adding To My Expeditors International Position

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