Shares of Expeditors International of Washington Inc.
EXPD,
-0.98%
sank 5.8% toward an eight-month low in premarket trading Tuesday, after the air and ocean freight logisitics company missed third-quarter profit and revenue expectations, citing a continued deceleration in demand and soft rates. Net earnings fell to $171.4 million, or $1.16 a share, from $414.2 million, or $2.56 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.28. Revenue dropped 49.8% to $2.19 billion, below the FactSet consensus of $2.29 billion. “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,” said Chief Executive Jeffrey Musser. “As a result, air and ocean capacity is now mostly plentiful and at rates that remain well below the pandemic period.” The company said it has cut its workforce by 8% since the end of 2022, and will continue to focus on aligning its headcount with transactions and volumes. The stock has dropped 10.7% over the past three months through Monday, while the Dow Jones Transportation Average
DJT,
-0.44%
has given up 12.6% and the Dow Jones Industrial Average
DJIA,
+0.17%
has shed 3.9%.