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Expeditors International of Washington, Inc. (EXPD), based in Seattle, is a leading third-party logistics provider specializing in global logistics management, including international air and ocean freight forwarding and consolidation. The company's current market cap stands at $17.5 billion, and it plans to release its Q2 earnings for fiscal 2024 before the market opens on Tuesday, Aug. 6.
Ahead of the event, analysts expect Expeditors International to report a profit of $1.24 per share, down 4.6% from $1.30 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in only one of the last four quarters and missed on three other occasions. Expeditors International reported an EPS of $1.17 for the last reported quarter, surpassing the consensus estimate by 6.4%.
Looking ahead, analysts expect Expeditors International to report an EPS of $4.99 in fiscal 2024, down marginally from $5.01 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 5.6% annually to $5.27.
EXPD stock has rallied marginally over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 18.2% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 13.2% returns over the same time frame.
EXPD’s weak price momentum compared to the broader market can be linked to widespread global conflicts, persistent inflation, fragile economies, and uncertain demand. Additionally, increasing air and ocean carrier capacities have pressured rates, with the ocean market's capacity growth not aligning with demand and the air market's expansion for international travel negatively impacting air cargo rates.
Expeditors International announced its Q1 earnings report on May 7. Despite exceeding analysts' consensus estimates, the stock dipped marginally as both the bottom line and top line declined 19% and 15% year over year, respectively. On the bright side, the company’s air tonnage and ocean volumes increased in Q1, compared to the sluggish first quarter last year, breaking a downward trend.
The current consensus opinion on Expeditors International stock is “Moderate Sell” overall. Among the 14 analysts covering the stock, nine recommend a "Hold," and five advise a “Strong Sell.”
While the stock currently trades at a premium to its average analyst price target of $111.08, the Street high price target of $132 indicates a potential upside of 5.7% from the current price levels.
On the date of publication, Kritika Sarmah 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.
