Expeditors International of Washington (EXPD) is set to announce its third-quarter 2023 financial results on November 7.
Historically, Expeditors has exceeded the Zacks Consensus Estimate in two out of the last four quarters, with an average beat of 0.49%.
Q3 Expectations
According to the Zacks Consensus Estimate, EXPD is projected to report a 46.73% YoY decline in revenue, with expectations at $2.32 billion. The expected decline is attributed to the decrease in volumes for air-freight tonnage and ocean containers, driven by weakening demand and falling rates.
Higher capital expenses may have impacted the bottom line. The Zacks Consensus Estimate for EXPD’s Q3 2023 earnings has been revised downward by 8.1% in the past 90 days.
What the Model Predicts
Our proven model does not conclusively predict an earnings beat for Expeditors this quarter. Typically, a combination of positive Earnings ESP (Earnings Expected Surprise) and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating the earnings estimates. However, Expeditors has an Earnings ESP of -1.28%, coupled with a Zacks Rank #3.
Highlights from Q2
In the second quarter of 2023, Expeditors reported earnings per share of $1.30, falling short of the Zacks Consensus Estimate of $1.34. Revenues of $2,239.8 million missed the Zacks Consensus Estimate of $2,878.8 million. Both earnings and revenues were negatively impacted by the lackluster demand scenario.
Stocks to Consider
If you are looking for investment opportunities within the broader Transportation sector, here are a few suggestions:
- Skywest, Inc. (SKYW) – Earnings ESP of +7.93%, Zacks Rank #2. SKYW reported better-than-expected earnings and revenues for Q3 2023.
- Old Dominion Freight Line, Inc. (ODFL) – Earnings ESP of +1.12%, Zacks Rank #2. ODFL’s Q3 2023 earnings per share beat the Zacks Consensus Estimate.
- Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB) – Earnings ESP of +1.80%, Zacks Rank #2. WAB reported better-than-expected earnings and revenue for Q3 2023.
Stay up-to-date with upcoming earnings announcements by checking the Zacks Earnings Calendar.
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Conclusion
Keep an eye on Expeditors’ upcoming Q3 2023 earnings announcement to see how the company performs. Investors looking for potential investment opportunities may consider stocks in the transportation sector, such as SkyWest (SKYW), Old Dominion Freight Line (ODFL), and Westinghouse Air Brake Technologies (WAB).
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of Nasdaq, Inc.
