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Market appears to be changing from a supply and demand standpoint
Expeditors International of Washington, Inc. has announced that preliminary unaudited results for its fiscal fourth quarter 2019 operating income is expected to fall in a range of US$177.0 million to US$183.0 million and that diluted earnings attributable to shareholders per share is expected to range between US$0.78 and US$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.
The Company recognise that both revenue and earnings will be below prior-year results and analyst consensus estimates.
It does not believe this to be a business model/performance issue and instead believe it ties more closely to the business environment in which it is operating. The market conditions that appear to have had an impact on 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.
The Company has seen impacts throughout the year from these market conditions, but the pace at which these changes occurred accelerated dramatically in the fourth quarter.
Expeditors expects to report final fourth quarter 2019 financial results on Tuesday, February 18, 2020.