By Katherine Hamilton

Shares of Expeditors International declined despite a first-quarter earnings beat as the company warned of trade chaos from new tariffs and signs of an economic slowdown ahead.

The stock fell 5% to $106.70 on Tuesday. Shares have lost about 3.3% of their value this year.

The Bellevue, Wash., provider of supply chain logistics and transportation said before the open that rapidly changing tariff policies are roiling companies and threatening to shrink trade.

"We believe that uncertainty is likely to continue for some time, with possibly significant impacts to our industry," Chief Executive Daniel Wall said.

While earnings were strong for Expeditors in the first quarter, Wall cautioned that the future is unpredictable and there are hints of a downturn.

Ocean volumes from China to the U.S. are showing signs of a significant decline, Wall said. Carriers have shown a willingness to manage capacity, Wall added, but they may not be able to do enough to keep rates from falling further if consumer demand fades and creates a greater imbalance with supply.

Freight by air and sea compared favorably with the prior-year quarter as companies front-loaded shipments in anticipation of higher tariffs, Wall said. It's too early to predict how air capacity and rates will be affected by the end of the de minimis loophole, which let certain shipments under $800 pass tariff-free.

Expeditors posted a profit of $203.8 million, or $1.47 a share, in the first quarter, compared with $169.2 million, or $1.17 a share, the year before. Analysts were expecting $1.37 a share, according to FactSet.

Revenue rose 21% to $2.67 billion, ahead of the $2.55 billion expected by Wall Street.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 06, 2025 11:58 ET (15:58 GMT)

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