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Incorporated in 1979 and headquartered in Seattle, Expeditors International of Washington, Inc. (EXPD) provides logistics services worldwide. With a market cap of $17 billion, this powerhouse navigates the complexities of air and ocean freight, customs brokerage, ground transportation, and warehousing.
Offering solutions from temperature-controlled transit to supply chain optimization, Expeditors connects industries like retail, electronics, and manufacturing with seamless delivery worldwide. Acting as both freight consolidator and agent, it handles everything from shipping documentation to trade compliance, ensuring smooth global operations for its clients. Expeditors thrives as the silent force behind efficient global trade. The firm is gearing up to release its fiscal 2024 Q3 earnings results on Tuesday, Nov. 5.
Ahead of the event, analysts expect Expeditors International’s profit to be $1.33 per share, up 14.7% from $1.16 per share in the year-ago quarter. The company had beat or matched Wall Street’s EPS estimates in two of the last four quarters while missing on two other occasions. Expeditors’ profit of $1.24 per share for the last reported quarter, despite declining 5% year over year, matched the consensus estimates.
Analysts project the company to report an EPS of $5.04 in fiscal 2024, up marginally from $5.01 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to surge 4.6% annually to $5.27.
Shares of the logistic provider have climbed 2.8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 35.9% gains and the Industrial Select Sector SPDR Fund’s (XLI) 38.4% returns during the same period.
Shares of Expeditors International have underperformed the broader market, facing challenges due to volatile freight rates and capacity constraints in air and ocean services. Geopolitical disruptions have further squeezed profitability, leading to a dip in operating income.
On Aug. 6, its shares dropped 4.3% following its Q2 earnings results. Despite a 9% annual revenue surge to $2.4 billion - beating Wall Street’s estimates - operating income fell 10% to $223.9 million, missing expectations. Adding to the pressure, its reliance on third-party carriers and a 3% decline in ocean shipments underscore the ongoing hurdles in maintaining operational stability.
The current consensus opinion on EXPD is “Moderate Sell” overall. Out of 14 analysts covering the stock, eight suggest a “Hold,” and the remaining six have a “Strong Sell.”
Although the stock currently trades above the mean price target of $116.38, the Street-high target price of $137 implies the stock could rally as much as 13.7%.
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.
