Expeditors International Reports Strong Q4 Earnings Amid Mixed Analyst Sentiment

Seattle’s Expeditors International of Washington, Inc. (EXPD) stands as a significant player in the logistics sector. The company, valued at a market cap of $16.3 billion, specializes in global logistics management, covering both air and ocean freight services.

As one of the few companies classified as “large-cap stocks,” Expeditors’ market capitalization exceeding $10 billion highlights its prominent standing and influence in the logistics arena.

Recent Performance and Stock Trends

Recently, Expeditors hit a three-year high of $131.59 on September 30, 2024; however, it is currently trading 10.1% below that peak. Over the last three months, EXPD shares surged by 6.4%, in contrast to a 2.6% decline in the ProShares Supply Chain Logistics ETF (SUPL) during the same period.

In a broader analysis, Expeditors has also outperformed other logistics companies over the longer term. Over the past six months, EXPD has seen a 6.9% decrease and a 1.5% drop over the past year, though this is more favorable than SUPL’s declines of 10.3% and 7.5%, respectively.

Examining technical aspects, EXPD traded predominantly below its 200-day moving average since mid-December 2024 but experienced fluctuations and recently moved above its 50-day moving average in mid-February.

Impressive Earnings Report

On February 18, Expeditors’ stock climbed 3.9% following the release of its strong Q4 results. The company enjoyed considerable growth with increased tonnage and strong demand from Asia. Total revenues surged by 29.7% year-over-year, reaching $2.95 billion, significantly surpassing Wall Street’s estimates. This growth was complemented by a remarkable 51% increase in operating income to $301.1 million. Moreover, earnings per share for the quarter rose 54.1% from the previous year to $1.68, exceeding consensus estimates by 17.5%. The firm’s operating cash flow also increased substantially, by 57.7% year-over-year to $249.7 million, bolstering investor confidence.

In comparison, Expeditors outperformed its peer, J.B. Hunt Transport Services, Inc. (JBHT), which saw a 12.7% decline over the past six months and a 21.9% drop over the past year.

Analysts’ Outlook and Consensus Ratings

Despite these positive earnings, analysts exhibit caution toward EXPD’s future. The stock currently holds a consensus “Moderate Sell” rating among 15 analysts covering it. As of the latest data, EXPD shares are trading slightly above the mean price target of $114.94.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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