Core Viewpoint - Expeditors International of Washington (EXPD) is expected to report its third-quarter 2024 results on November 5, with a mixed earnings history and a consensus estimate indicating potential growth in earnings and revenues [1][2]. Earnings Estimates - The Zacks Consensus Estimate for EXPD's earnings is $1.33 per share, reflecting a 3.10% upward revision in the past 60 days [2]. - Revenue estimates for the upcoming quarter are set at $2.37 billion, indicating an 8.10% year-over-year growth [2]. Segment Performance - Estimated revenues for specific services in the third quarter include: - Airfreight Services: $773.1 million (up 6.7% year-over-year) - Ocean Freight and Services: $593.8 million (up 6% year-over-year) - Customs Brokerage and Other Services: $924.9 million (up 2.2% year-over-year) [3]. Operating Expenses - An increase in operating expenses is anticipated to negatively impact EXPD's bottom-line performance, primarily driven by rising salaries and related costs, with total operating expenses expected to rise by 4.6% year-over-year [4]. Earnings Prediction Model - The company's earnings prediction model suggests a potential earnings beat, supported by a positive Earnings ESP of +2.13% and a Zacks Rank of 2 (Buy) [5]. Recent Performance - In the second quarter of 2024, EXPD reported earnings of $1.24 per share, matching the Zacks Consensus Estimate, but reflecting a 4.6% decline year-over-year due to high costs. Total revenues were $2.44 billion, exceeding the consensus estimate of $2.22 billion and increasing by 8.9% year-over-year [6].

Core Viewpoint - Expeditors International (EXPD) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance Indicators - The recent upgrade for Expeditors International indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - For the fiscal year ending December 2024, Expeditors International is expected to earn $5.01 per share, with a 0.9% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Expeditors International to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating its strong earnings estimate revision feature and potential for market-beating returns [10].

Core Viewpoint - Expeditors (EXPD) is experiencing financial stability due to its robust liquidity position, but it faces challenges from rising operating expenses that are negatively impacting its bottom line [1][4]. Group 1: Financial Performance - The company returned $205 million to shareholders through stock repurchases and dividends in Q2 2024, which enhances investor confidence and positively affects the bottom line [2]. - EXPD exited Q2 2024 with a current ratio of 1.71, indicating sufficient cash to meet short-term debt obligations, and its shares have risen 10.6% over the past year, contrasting with a 1% decline in its industry [3]. Group 2: Operating Expenses - Operating expenses surged by 11.2% year over year to $2.22 billion in Q2 2024, with aircraft services, which account for 29% of total operating costs, increasing by 23% year over year [4]. - Ocean freight and ocean services expenses rose by 17.8% year over year, contributing to the overall increase in operating costs [4]. Group 3: Market Conditions - The company is facing declining airfreight and ocean container volumes due to weakened demand and falling rates, as management notes that shippers are experiencing uncertain demand amid high inflation and interest rates [5].

It has been about a month since the last earnings report for Expeditors International (EXPD) . Shares have added about 7.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Expeditors International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Expeditors' Q2 Earni ...

Core Viewpoint - Expeditors International of Washington (EXPD) is focusing on shareholder-friendly initiatives and maintaining strong liquidity, but is facing challenges due to declining volumes and high capital expenditures [1]. Group 1: Shareholder Initiatives - The company announced a 3% increase in its semi-annual cash dividend in May 2023, continuing a trend from 2022 [2]. - Expeditors is actively engaging in share buybacks to enhance shareholder value [2]. Group 2: Cost Management and Financial Health - To address soft demand, the company is cutting costs, with a significant reduction in compensation expenses year-over-year in 2023 [3]. - Expeditors reported a current ratio of 2.02 at the end of 2023, indicating strong liquidity [3]. - The acquisition of Fleet Logistics' Digital Platform has improved Expeditors' online less-than-truckload shipping platform, Koho [3]. Group 3: Market Challenges - The company is experiencing declining airfreight and ocean container volumes due to weakened demand and falling rates [4]. - High capital expenditures are a concern, with 2022 capex at $86.8 million, significantly higher than $36.2 million in 2021, and 2023 capex at $39.3 million [5]. Group 4: Stock Performance - Over the past six months, EXPD shares have decreased by 5.3%, compared to a 4.7% decline in its industry [7].

Financial Performance - Q2 2024 diluted EPS decreased 5% to $1.24, while net earnings attributable to shareholders fell 11% to $175 million[2]. - Revenues increased 9% year-over-year to $2.4 billion, despite operating income decreasing 10% to $224 million[2][7]. - Total revenues for Q2 2024 reached $2,439,001, an increase of 8.9% compared to $2,239,752 in Q2 2023[11]. - Net earnings attributable to shareholders for Q2 2024 were $175,469, a decrease of 10.4% from $196,800 in Q2 2023[11]. - Operating income for the first half of 2024 was $438,695, down 16.3% from $524,466 in the first half of 2023[11]. - Operating income for Q2 2024 was $575,674, compared to $248,497 in Q2 2023, indicating a significant increase of approximately 131.5%[13]. - Revenues for the first half of 2024 were $4,645,679, down from $4,832,341 in the first half of 2023, representing a decline of about 3.9%[13]. Expenses and Liabilities - The company faced high expenses, with compensation being the largest variable operating expense, impacting efficiency targets[4]. - Total operating expenses increased to $2,215,082 in Q2 2024, up from $1,991,255 in Q2 2023, representing an increase of 11.3%[11]. - Directly related costs of transportation and other expenses for Q2 2024 totaled $1,639,408, an increase from $1,419,182 in Q2 2023, which is an increase of about 15.5%[13]. - Current assets increased to $3.7 billion as of June 30, 2024, compared to $3.4 billion at the end of 2023[10]. - Total liabilities rose to $2.2 billion as of June 30, 2024, up from $1.7 billion at the end of 2023[10]. - The company reported a decrease in total equity to $2.2 billion as of June 30, 2024, down from $2.4 billion at the end of 2023[10]. Shareholder Returns - The company returned $205 million to shareholders through stock repurchases and dividends in Q2 2024[5]. - The company repurchased common stock amounting to $102,300 during Q2 2024, compared to $687,689 in Q2 2023[12]. Market Conditions - The air market is constrained by e-commerce demand, while ocean routing is disrupted by geopolitical events, affecting service frequency and transit times[2][3]. - Airfreight tonnage volume rose 15% year-over-year, while ocean container volume decreased by 3%[2][9]. - The company reported a decrease in revenues from North Asia, which totaled $637,351 in Q2 2024, down from $510,027 in Q2 2023, a decline of approximately 24.9%[13]. - The company experienced a decline in revenues from South Asia, which were $287,943 in Q2 2024, down from $199,868 in Q2 2023, a decrease of approximately 44.0%[13]. Cash Flow and Investments - Cash and cash equivalents at the end of Q2 2024 were $1,271,853, a decrease from $1,698,587 at the end of Q2 2023[12]. - Net cash from operating activities for Q2 2024 was $126,769, compared to $158,446 in Q2 2023, a decline of 20.0%[12]. - Capital expenditures for the first half of 2024 amounted to $18,124, compared to $20,607 in the same period of 2023, showing a decrease of approximately 12.1%[13]. - The company is focused on investments in technology and processes to drive future growth and efficiency[5].

Core Insights - Expeditors International (EXPD) reported $2.44 billion in revenue for Q2 2024, an 8.9% year-over-year increase, with an EPS of $1.24, slightly down from $1.30 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $2.22 billion by 9.86%, while the EPS met the consensus estimate [1] Revenue Performance - Airfreight services revenue was $860.32 million, surpassing the estimated $726.60 million, reflecting a 14.5% year-over-year increase [3] - Ocean freight and ocean services revenue reached $651.68 million, exceeding the average estimate of $548.43 million, marking a 9.8% year-over-year increase [4] - Customs brokerage and other services revenue was $927 million, above the estimated $899.88 million, showing a 3.6% year-over-year increase [8] Net Revenue Analysis - Net revenues from ocean freight and ocean services were $173.55 million, compared to the estimated $142.07 million, indicating a year-over-year decline of 7.7% [5] - Net revenues from airfreight services were $215.16 million, slightly above the estimated $200.27 million, reflecting a 4.9% year-over-year decrease [6] - Net revenues from customs brokerage and other services were $410.88 million, below the estimated $422.70 million, with a year-over-year increase of 1.1% [7] Stock Performance - Shares of Expeditors International have returned +1.2% over the past month, contrasting with the Zacks S&P 500 composite's -6.7% change, indicating potential outperformance in the near term [8]

Expeditors International (EXPD) came out with quarterly earnings of $1.24 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.30 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this logistics services provider would post earnings of $1.10 per share when it actually produced earnings of $1.17, delivering a surprise of 6.36%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. ...

Many investors find transportation stocks unique due to their inherent qualities and vital role in the economy. Whether it's people or goods, transportation is a fundamental service with demand that tends to be resilient, even in softer markets. Likewise, this industry is essential for economic growth, which means that its constituents tend to grow in line with the economy. With the U.S. economy posting GDP growth of 2.8% in the three months to June and beating expectations, the outlook on transportation st ...

In its upcoming report, Expeditors International (EXPD) is predicted by Wall Street analysts to post quarterly earnings of $1.24 per share, reflecting a decline of 4.6% compared to the same period last year. Revenues are forecasted to be $2.17 billion, representing a year-over-year decrease of 2.9%. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 4.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projecti ...