Expeditors International Prepares for Earnings Release Amid Mixed Market Performance
Founded in 1979, Expeditors International of Washington, Inc. (EXPD), based in Seattle, operates as a major logistics provider across the globe. With a market cap of $17 billion, the company efficiently manages various logistics services, including air and ocean freight, customs brokerage, ground transportation, and warehousing.
Expeditors offers a range of logistics solutions, from temperature-controlled shipping to supply chain optimization. This connectivity helps industries such as retail, electronics, and manufacturing achieve timely deliveries across the world. The firm functions as both a freight consolidator and an agent, overseeing tasks like shipping documentation and trade compliance. As it prepares to release its fiscal 2024 Q3 earnings on Tuesday, Nov. 5, market attention grows.
Analysts project that Expeditors will report a profit of $1.33 per share for the upcoming quarter, representing a 14.7% increase from $1.16 per share during the same period last year. The company has historically navigated mixed results, beating or matching Wall Street’s estimates in half of the last four quarters, while missing on two occasions. In its most recent quarter, the company reported earnings of $1.24 per share, aligning with consensus estimates despite a 5% decline year over year.
Looking ahead, analysts anticipate the company will see an EPS of $5.04 for fiscal 2024, a slight increase from $5.01 in fiscal year 2023. Furthermore, projections for fiscal 2025 suggest a stronger performance with EPS potentially rising to $5.27, an increase of 4.6% annually.
Over the past year, Expeditors’ stock has increased by 2.8%, lagging behind the broader S&P 500 Index’s ($SPX) impressive 35.9% gains and the Industrial Select Sector SPDR Fund’s (XLI) 38.4% returns.
Despite a steady increase in stock price, Expeditors has faced considerable challenges, including fluctuating freight rates and limited capacity in air and ocean services. Additionally, geopolitical issues have squeezed profit margins, resulting in reduced operating income. On Aug. 6, shares dropped 4.3% following the release of Q2 earnings results. Although revenue surged by 9% year over year to reach $2.4 billion—exceeding Wall Street’s expectations—operating income fell by 10% to $223.9 million, falling short of forecasts. Reliance on third-party carriers and a 3% decrease in ocean shipments further highlights the current operational challenges.
The consensus rating for EXPD is “Moderate Sell.” Out of 14 analysts monitoring the stock, eight recommend a “Hold,” while six suggest a “Strong Sell.”
Currently, the stock trades above the average price target of $116.38, but analysts suggest that the highest target price of $137 allows for potential gains of up to 13.7%.
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On the date of publication, Sristi Jayaswal 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.
