Is a Beat in Store for Expeditors This Earnings Season?

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].