Expeditors International Prepares for Earnings Report Amid Mixed Analyst Opinions
Expeditors International of Washington, Inc. (EXPD), a logistics giant with a market cap of $15.4 billion, is set to share its fiscal Q4 earnings on Tuesday, Feb. 18. The Seattle-based company specializes in logistics services, including international freight forwarding and cargo solutions for both air and ocean transportation.
Expectations for Q4 Earnings
Analysts predict that Expeditors will report a profit of $1.43 per share, a significant rise of 31.2% compared to $1.09 per share in the same quarter last year. The company has had a mixed performance in meeting earnings estimates, surpassing expectations in three out of the last four quarters. Notably, the previous quarter saw EXPD achieve earnings of $1.63 per share, exceeding forecasts by 22.6%.
Future Earnings Projections
For fiscal 2024, analysts anticipate an EPS of $5.47, reflecting a 9.2% increase from $5.01 reported in fiscal 2023. However, expectations for fiscal 2025 suggest a decline of 3.7% to an anticipated $5.27.
Stock Performance Overview
Over the past year, shares of EXPD have dropped 12.8%, significantly trailing both the S&P 500 Index, which has risen 26.5%, and the Industrial Select Sector SPDR Fund (XLI), which gained 25% during the same period.
Recent Earnings Boost and Concerns
Shares of EXPD rose nearly 1.5% on Nov. 5 after reporting impressive Q3 results, showcasing earnings of $1.63 per share and revenues of $3 billion. Year-over-year, earnings grew by 40.5%, while revenues increased by 37%. This success stemmed from strong growth in air freight tonnage and ocean container volumes, spurred partly by early shipments amid uncertainties concerning port disruptions and geopolitical issues.
Despite these positive results, management expressed caution. They warned that ocean rates might drop if demand decreases and capacity increases, particularly if trade activities in the Red Sea normalize. Furthermore, management anticipates that the global freight market may continue to experience volatility, which may have affected shareholder confidence, resulting in a 2.1% dip in share price after the earnings announcement.
Analysts’ Outlook
Wall Street analysts hold a moderately bearish perspective on Expeditors’ stock, collectively rating it as a “Moderate Sell.” Out of 14 analysts, eight recommend a “Hold” position while six advocate for a “Strong Sell.” The average price target for EXPD stands at $114.92, suggesting a modest potential upside of 4.1% from current levels.
On the date of publication, Neharika Jain 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
