Core Viewpoint - UBS upgraded Expeditors International from Neutral to Buy, raising the price target to $166 due to productivity improvements and revenue resilience despite lower ocean freight rates [1] Group 1: Financial Projections - UBS increased its 2027 EPS estimate for Expeditors to $6.90 per share from $6.58, which is above the consensus of $6.39, reflecting initial efficiency benefits [2] - Analysts modeled a 4% rebound in net revenue for Expeditors [2] Group 2: Valuation Insights - At 24x projected earnings, Expeditors' current valuation implies roughly $950 million in EBIT for 2027, compared to UBS's forecast of $1.13 billion, indicating the stock is undervalued [3] - Investor sentiment remains cautious due to weak ocean pricing, with most analysts maintaining Neutral or Sell ratings [3] Group 3: Long-term Potential - UBS highlighted the long-term potential for Expeditors to achieve significant productivity gains through technology integration and process optimization [1]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements and investor decisions [1] Upgrades Summary - Truist upgraded Block (XYZ) to Hold from Sell with a price target of $68, increased from $67, citing improved risk/reward dynamics following a recent share pullback, despite concerns over credit risk and growth in Cash App Borrow [2] - TD Cowen upgraded Yum! Brands (YUM) to Buy from Hold with a price target of $173, up from $162, anticipating that the potential sale of Pizza Hut will enhance Yum's growth profile [2] - Mizuho upgraded Rubrik (RBRK) to Outperform from Neutral, maintaining a price target of $97, attributing the upgrade to valuation as shares have declined 16% since mid-May despite solid execution [2] - Barclays upgraded Gap (GAP) to Overweight from Equal Weight with a price target of $30, raised from $19, praising the company's disciplined leadership strategy under CEO Richard Dickson [2] - UBS upgraded Expeditors (EXPD) to Buy from Neutral with a price target of $166, up from $138, believing that growth in the Customs and other segments will counterbalance the pressure from lower ocean rates in 2026 [2]

Core Viewpoint - Expeditors International (EXPD) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating improving earnings outlook and stock performance [1][10]. Earnings Estimate Revisions - The current quarter's earnings estimate is projected at $1.44 per share, reflecting a decrease of 14.3% from the previous year, but has seen a 13.25% increase in consensus estimates over the last 30 days with four upward revisions and no negative changes [6]. - For the full year, the earnings estimate stands at $5.85 per share, which is a 2.3% increase from the prior year, supported by six upward revisions and no negative revisions, leading to a 6.61% increase in consensus estimates [7][8]. Analyst Sentiment - There is a strong consensus among analysts regarding the upward revision of earnings estimates for Expeditors International, contributing to a favorable outlook for the company [3][9]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Expeditors International as 1, indicating strong buy sentiment based on the positive estimate revisions [9]. Stock Performance - The stock has experienced an 18.8% gain over the past four weeks, driven by the positive earnings growth prospects, suggesting continued upward momentum [10].

Revenue Performance - Revenues declined 4% due to a significant drop in ocean services, with ocean freight and other services decreasing by 27%[61] - Customs brokerage and other services revenues increased by 13%, while airfreight services revenues grew by 3%[61] - Airfreight services revenues increased by 3% to $1,020,258, while expenses rose by 4% to $766,783 for the three months ended September 30, 2025, compared to the same period in 2024[72] - Ocean freight services revenues decreased by 27% to $746,120, and expenses decreased by 31% to $542,304 for the three months ended September 30, 2025, compared to the same period in 2024[77] - Customs brokerage and other services revenues increased by 13% to $1,128,373, with expenses rising by 11% to $630,570 for the three months ended September 30, 2025, compared to the same period in 2024[84] - Ocean freight consolidation revenues decreased by 35% for the three months ended September 30, 2025, primarily due to a 33% decrease in average sell rates[78] - North Asia ocean freight revenues decreased by 43% for the three months ended September 30, 2025, driven by lower volumes and average rates[79] Operating Income and Earnings - Operating income decreased by 4% and net earnings to shareholders decreased by 3% compared to Q3 2024[61] - Operating income for the three months ended September 30, 2025, was $288,042, a decrease of 4% compared to $301,524 in the same period in 2024[72] - Net earnings attributable to shareholders decreased by 3% to $222,256 for the three months ended September 30, 2025, compared to $229,574 in the same period in 2024[72] - Earnings per share increased by 1% to $1.64, with cash from operating activities rising to $201 million from $90 million in Q3 2024[61] Costs and Expenses - Salaries and related costs increased by 9% to $490,437 for the three months ended September 30, 2025, primarily due to a 7% increase in headcount[88] - Other overhead expenses increased by 14% to $176,615 for the three months ended September 30, 2025, driven by technology-related expenses and higher rental costs[92] Cash Flow and Capital Expenditures - Net cash provided by operating activities for Q3 2025 was $201 million, up from $90 million in Q3 2024, and for the nine months ended September 30, 2025, it was $723 million compared to $474 million in the same period in 2024, reflecting an increase of $111 million and $249 million respectively due to changes in working capital[99] - Cash used in investing activities for Q3 2025 was $10 million, compared to $13 million in Q3 2024, and for the nine months ended September 30, 2025, it was $39 million versus $30 million in the same period in 2024, primarily for capital expenditures[103] - Cash used in financing activities during Q3 2025 was $150 million, compared to $76 million in Q3 2024, and for the nine months ended September 30, 2025, it was $655 million versus $659 million in the same period in 2024[104] - Total anticipated capital expenditures for 2025 are estimated to be approximately $60 million, including routine capital expenditures, leasehold and building improvements, and investments in technology[103] Tax and Currency Impact - The effective income tax rate decreased to 25.2% for the three months ended September 30, 2025, compared to 26.4% in the same period in 2024[94] - An average 10% weakening of the U.S. dollar would have raised operating income by approximately $46 million for the nine months ended September 30, 2025[113] - Net foreign currency transactional losses for Q3 2025 were approximately $3 million, a decrease from $11 million in Q3 2024, while for the nine months ended September 30, 2025, losses were approximately $20 million compared to gains of less than $1 million in the same period in 2024[114] Trade Environment and Regulatory Changes - The U.S. government has imposed significantly higher tariffs on imports, affecting trade dynamics and creating an unpredictable environment[62] - The termination of the "de minimis" exemption for goods made in China and Hong Kong has added complexity to customs declarations[62] - High demand for customs brokerage services has resulted in increased revenues from customs declaration fees due to a dynamic trade environment[61] - The global economic environment remains uncertain, with inflation, high interest rates, and geopolitical conflicts impacting trade[65] - Seasonal demand trends indicate that the first quarter is typically the weakest, while the third and fourth quarters are the strongest[66] Financial Position - As of September 30, 2025, working capital was $1,627 million, including cash and cash equivalents of $1,190 million, with no long-term obligations or debt other than recorded lease liabilities[99] - At September 30, 2025, borrowings under international unsecured bank lines of credit were $36 million, with contingent liabilities of $80 million from standby letters of credit and guarantees[107] - The company had approximately $132 million of net unsettled intercompany transactions as of September 30, 2025, with the majority resolved within 30 days[114] - The company had fixed lease payment obligations of $724 million as of September 30, 2025, with $143 million payable within 12 months[108]

Core Insights - November is historically the best month for S&P 500 performance, with an average increase of 1.9% [4] - Five S&P 500 stocks have already gained over 12% in November, indicating strong early performance despite the index being down 0.7% this month [1][2] Company Performance - Idexx Laboratories (IDXX) has seen a 14.4% increase in November, driven by a quarterly profit that exceeded estimates by nearly 8% [5] - Henry Schein (HSIC) shares are up 13.9% this month, also surpassing quarterly profit targets by nearly 8% [6] - Other notable performers include Expeditors International of Washington (EXPD) and Incyte (INCY), both up 13.1%, and Kenvue (KVUE) with a 12.9% increase [7] Market Context - The S&P 500 has not tested its 50-day moving average for 129 trading sessions, marking the longest streak since 2007 [3] - The overall market is at record highs, suggesting that further gains are possible despite the current downturn in the index [2]

Core Insights - Expeditors International's stock reached an all-time high of $136.18, reflecting an 11.2% increase over the past year and a 16.7% rise in the last three months [1] - Despite a decline in diluted net earnings by 1% to $1.64 and a 3% drop in net earnings to $222 million, the earnings per share exceeded Wall Street estimates, contributing to the stock price increase [2][3] Financial Performance - The company's revenue was reported at $2.9 billion, surpassing forecasts, and EBIT margins also showed positive results [3] - Operating income and revenues both experienced a 4% decline [2] Business Segments - Airfreight business saw a 4% increase in shipment volume, although growth slowed throughout the quarter, with July up 6%, August up 3%, and September up 2% [4] - Customs Brokerage revenue grew by 13.3% year-on-year, driven by tariffs and increased demand for information and guidance among shippers and importers [6][7] - Ocean freight business faced challenges, with a 3% decline in traffic measured in forty-foot equivalents, deteriorating from a 3% increase in July to a 6% decrease in October [8] Market Conditions - The airfreight capacity became looser after the expiration of the de minimis exception, leading to lower sell and buy rates during the quarter [5] - The customs group is under pressure due to increased volume and complexity of entries, prompting investments in productivity enhancements, including AI and technology solutions [8]

Core Viewpoint - Expeditors International of Washington, Inc. has declared a semi-annual cash dividend of $0.77 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025 [1] Financial Performance - For the third quarter of 2025, diluted net earnings attributable to shareholders per share (EPS) increased by 1% to $1.64, while net earnings attributable to shareholders decreased by 3% to $222 million [6] - Operating income for the third quarter of 2025 decreased by 4% to $288 million, and revenues also decreased by 4% to $2.9 billion [6] - In contrast, airfreight tonnage increased by 4% during the same period [6] - For the second quarter of 2025, EPS increased by 8% to $1.34, with net earnings attributable to shareholders rising by 5% to $184 million [8] - Operating income for the second quarter increased by 11% to $248 million, and revenues increased by 9% to $2.7 billion [8] Company Overview - Expeditors is a global logistics company headquartered in Bellevue, Washington, employing trained professionals across 172 district offices and various branch locations on six continents [2] - The company offers a range of services including air and ocean freight consolidation, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing, distribution, and customized logistics solutions [2] Leadership Changes - David A. Hackett has been appointed as Senior Vice President and Chief Financial Officer, effective October 1, 2025, following the retirement of the current CFO, Bradley S. Powell [7]

Financial Performance - Q3 2025 diluted earnings per share (EPS) increased by 1% to $1.64 compared to Q3 2024[6] - Net earnings attributable to shareholders decreased by 3% to $222 million, while operating income also decreased by 4% to $288 million[6] - Revenues for Q3 2025 decreased by 4% to $2.9 billion, but year-to-date revenues increased by 7% to $8.2 billion[6][13] - Total revenues for Q3 2025 were $2,894,751, a decrease of 3.5% compared to $3,000,131 in Q3 2024[21] - Operating income for Q3 2025 was $288,042, a decrease of 4.5% from $301,524 in Q3 2024[21] - Net earnings attributable to shareholders for Q3 2025 were $222,256, down 3.4% from $229,574 in Q3 2024[21] - Diluted earnings per share for Q3 2025 was $1.64, slightly up from $1.63 in Q3 2024[21] - For the nine months ended September 30, 2025, revenues amounted to $8,213,055, compared to $7,645,810 for the same period in 2024, reflecting an increase of approximately 7.4%[25] - Operating income for the nine months ended September 30, 2025, was $801,636, up from $740,219 in the same period of 2024, indicating a growth of about 8.3%[25] Shareholder Returns - Cash returned to shareholders through share repurchases was $212 million, totaling $725 million for the year-to-date period[6][9] - The company repurchased 1.8 million shares at an average price of $119.65 during Q3 2025[15] - The company repurchased common stock amounting to $212,294 in Q3 2025, compared to $140,031 in Q3 2024[23] Operating Expenses - The company experienced a 10% increase in salaries and other operating expenses year-to-date, totaling $1.94 billion[13] - Salaries and related costs for the three months ended September 30, 2025, were $490,437, compared to $450,308 in the same period of 2024, representing an increase of approximately 8.9%[25] - The company reported a decrease in operating expenses to $2,606,709 in Q3 2025, down from $2,698,607 in Q3 2024[21] - Directly related cost of transportation and other expenses for the three months ended September 30, 2025, was $1,939,657, compared to $2,093,964 in the same period of 2024, showing a decrease of about 7.4%[25] Assets and Liabilities - Total assets as of September 30, 2025, were $4.78 billion, with total liabilities of $2.05 billion[19] - Identifiable assets at the end of September 30, 2025, totaled $4,779,582, a decrease from $5,170,917 at the end of September 30, 2024, representing a decline of approximately 7.6%[25] - Equity at the end of September 30, 2025, was $2,282,638, compared to $2,359,170 at the end of September 30, 2024, reflecting a decline of approximately 3.2%[25] Cash Flow - Net cash from operating activities for the nine months ended September 30, 2025, was $723,202, an increase of 52.7% compared to $473,645 in the same period of 2024[23] - Cash and cash equivalents at the end of Q3 2025 were $1,190,167, compared to $1,293,173 at the end of Q3 2024[23] Business Operations - Airfreight tonnage increased by 4%, while ocean container volume decreased by 3% during the quarter[6] - The customs brokerage business continued to show strong growth due to high demand, driven by a dynamic trade environment[7][8] - Airfreight services revenue increased to $1,020,258 in Q3 2025, up 3.4% from $986,950 in Q3 2024[21] Capital Expenditures - Capital expenditures for the three months ended September 30, 2025, were $11,098, down from $12,291 in the same period of 2024, showing a reduction of about 9.7%[25] Depreciation and Amortization - Depreciation and amortization for the three months ended September 30, 2025, totaled $14,248, slightly down from $15,774 in the same period of 2024, indicating a decrease of about 9.7%[25]

Core Insights - Expeditors International of Washington (EXPD) reported third-quarter 2025 earnings of $1.64 per share, surpassing the Zacks Consensus Estimate of $1.40, with a year-over-year increase of 0.6% [1][10] - Total revenues reached $2.89 billion, exceeding the Zacks Consensus Estimate of $2.68 billion, but reflecting a 4% decline year over year due to challenges in ocean freight and services [1][10] Financial Performance - Airfreight tonnage volume increased by 4% during the quarter, while ocean container volume decreased by 3% [2] - Operating income fell by 4% year over year to $288 million, with total operating expenses decreasing by 3.5% year over year to $2.6 billion [2] - Airfreight Services revenues rose by 3.4% year over year to $1 billion, driven by growth in airfreight tonnage exports from North and South Asia [3] - Ocean freight and services revenues plummeted by 26.7% year over year to $746.1 million, impacted by pricing volatility and lower volumes [3] - Customs Brokerage and other services revenues increased by 13.5% year over year to $1.13 billion, with strong growth across all businesses in this category [3] Shareholder Returns - In the third quarter of 2025, EXPD returned $212 million to shareholders through share buybacks, totaling $725 million year to date through share repurchases and dividends [4] - The company ended the third quarter with cash and cash equivalents of $1.19 billion, up from $1.15 billion at the end of 2024 [4] Industry Context - Delta Air Lines reported third-quarter 2025 earnings of $1.71 per share, beating estimates and showing a 14% year-over-year increase due to low fuel costs [6] - United Airlines reported mixed results, with adjusted earnings per share of $2.78, surpassing estimates but declining 16.5% year over year [8]

Core Insights - Expeditors International reported revenue of $2.89 billion for the quarter ended September 2025, a decrease of 3.5% year-over-year, while EPS increased slightly to $1.64 from $1.63 [1] - The revenue exceeded the Zacks Consensus Estimate of $2.68 billion by 7.84%, and the EPS surpassed the consensus estimate of $1.40 by 17.14% [1] Revenue Breakdown - Airfreight services generated $1.02 billion, exceeding the estimated $966.34 million, reflecting a year-over-year increase of 3.4% [4] - Customs brokerage and other services brought in $1.13 billion, surpassing the average estimate of $1.01 billion, with a year-over-year growth of 13.3% [4] - Ocean freight and ocean services reported $746.12 million, above the estimated $703.65 million, but showed a significant decline of 26.7% compared to the previous year [4] Stock Performance - Over the past month, shares of Expeditors International returned -1%, contrasting with the Zacks S&P 500 composite's increase of 2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]