(Reuters) – Logistics services provider Expeditors International of Washington missed estimates for third-quarter profit on Tuesday due to a deceleration in freight demand, sending its shares down 8.5% in premarket trading.
The logistics sector has had to grapple with a reduction in e-commerce activity compared to the peak levels seen during the pandemic, as people reverted to their usual shopping habits and redirected their expenses towards experiences like travel and dining.
Expeditors’ adjusted profit for the quarter ended Sept. 30 came in at $1.24 per share, compared with analysts’ average expectations of $1.28 per share, according to LSEG data.
“The shipping industry has been undergoing a great unwinding of so many of the drivers that led up to the massive mismatch of supply and demand that occurred during the pandemic,” CEO Jeffrey Musser said.
Airfreight tonnage volume decreased 14% and ocean container volume decreased 15% in the reported quarter.
Total revenues fell nearly 50% to $2.19 billion, compared with analysts’ estimates of $2.31 billion.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shailesh Kuber)
