Valued at a market cap of $15.4 billion, Expeditors International of Washington, Inc. (EXPD) provides logistics services, including international freight forwarding and consolidation, for both air and ocean freight. The Seattle, Washington-based company also provides optimization, trade compliance consulting, cargo security, and solutions. It is expected to announce its fiscal Q4 earnings results on Tuesday, Feb. 18.
Ahead of this event, analysts expect the logistics company to report a profit of $1.43 per share, up 31.2% from $1.09 per share in the year-ago quarter. The company has met or beaten Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. Its earnings of $1.63 per share in the previous quarter crushed the forecasted figure by a notable margin of 22.6%.
For fiscal 2024, analysts expect EXPD to report an EPS of $5.47, up 9.2% from $5.01 in fiscal 2023. However, in fiscal 2025, EPS is expected to decline 3.7% year-over-year to $5.27.
Shares of EXPD have declined 12.8% over the past 52 weeks, massively lagging behind both the S&P 500 Index's ($SPX) 26.5% rise and the Industrial Select Sector SPDR Fund’s (XLI) 25% return over the same time frame.
On Nov. 5, shares of EXPD gained nearly 1.5% after delivering significantly better-than-expected Q3 earnings of $1.63 per share and revenues of $3 billion. Moreover, the company experienced a 40.5% year-over-year increase in earnings and a 37% annual growth in revenues. Strong growth in Airfreight tonnage and ocean container volumes primarily led to its robust performance. The increase in volumes was partially fueled by early freight moves. Some shippers moved freight early due to concerns over port disruptions and geopolitical tensions.
However, the management expressed a cautionary outlook. It believes that ocean rates may decline if demand softens and capacity increases, particularly if commerce on the Red Sea returns to normal. Additionally, they think that global freight markets and pricing are likely to remain volatile for some time. This might have lowered investor confidence and led to a 2.1% decline in its share price on the day following its earnings release.
Wall Street analysts are moderately bearish about Expeditors’ stock, with a "Moderate Sell" rating overall. Among 14 analysts covering the stock, eight recommend “Hold,” and six suggest “Strong Sell.” The average price target for EXPD is $114.92, which indicates a slight 4.1% potential upside from the current levels.
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