Expeditors International: Earnings Outlook as Q1 Results Approach

With a market capitalization of $14.8 billion, Expeditors International of Washington, Inc. (EXPD) is a key player in logistics services both in the Americas and globally. The company, headquartered in Bellevue, Washington, provides a range of offerings including airfreight, ocean freight services, customs brokerage, warehousing, and distribution. EXPD is set to announce its first-quarter results on Tuesday, May 6, prior to the market’s opening.

Analysts’ Expectations for Q1 Earnings

Ahead of the earnings release, analysts anticipate that EXPD will report a profit of $1.30 per share. This figure represents an 11.1% increase from the previous year’s profit of $1.17 per share for the same quarter. Notably, the company has either met or exceeded analysts’ earnings estimates in each of the past four quarters.

Fiscal 2025 and 2026 Projections

Looking ahead to the full fiscal year of 2025, forecasts indicate that EXPD will report an earnings per share (EPS) of $5.41, reflecting a decline of 5.4% from the $5.72 EPS recorded in fiscal 2024. However, for fiscal 2026, earnings are projected to rise by 3.7% year-over-year to $5.61 per share.

Stock Performance and Recent Developments

Over the past year, Expeditors International’s shares have declined by 5.3%, contrasting with the S&P 500 Index’s 6% gains and the Industrial Select Sector SPDR Fund’s (XLI) 2.5% returns during the same period.

On February 18, Expeditors’ stock rose by 3.9% after the company released impressive Q4 results. This increase was propelled by solid growth across various business lines, heightened tonnage, and substantial demand from Asia. Total revenues for the quarter soared by 29.7% year-over-year to $2.95 billion, significantly outpacing Wall Street’s expectations. Furthermore, the company enjoyed considerable margin expansion, which contributed to a remarkable 51% year-over-year growth in operating income, amounting to $301.1 million. The EPS for Q4 surged 54.1% year-over-year to $1.68, exceeding consensus estimates by 17.5%. In addition, operating cash flow increased by 57.7% year-over-year to $249.7 million, enhancing investor confidence.

Analyst Ratings and Market Sentiment

Despite the positive recent performance, the overall consensus on EXPD stock remains moderately bearish, with a “Moderate Sell” rating from analysts. Among the 15 analysts monitoring the stock, there are nine “Holds” and six “Strong Sells.” Currently, the stock is trading slightly below its mean price target of $113.36.

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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.