Expeditors International (EXPD) Up 7.4% Since Last Earnings Report: Can It Continue?

Core Insights - Expeditors International's Q3 2025 earnings of $1.64 per share exceeded the Zacks Consensus Estimate of $1.40, marking a 0.6% year-over-year increase. Total revenues reached $2.89 billion, surpassing the estimate of $2.68 billion but reflecting a 4% decline year-over-year due to challenges in ocean freight and services [3][4]. Financial Performance - Airfreight tonnage volume rose by 4% in Q3, while ocean container volume fell by 3%. Operating income decreased by 4% year-over-year to $288 million, and total operating expenses decreased by 3.5% to $2.6 billion [4]. - Airfreight Services revenues increased by 3.4% year-over-year to $1 billion, driven by export growth from North and South Asia. Conversely, ocean freight and services revenues plummeted by 26.7% year-over-year to $746.1 million due to pricing volatility and lower volumes. Customs Brokerage and other services revenues grew by 13.5% year-over-year to $1.13 billion [5]. Shareholder Returns - In Q3 2025, Expeditors returned $212 million to shareholders through share buybacks, totaling $725 million year-to-date through repurchases and dividends. The company ended the quarter with cash and cash equivalents of $1.19 billion, up from $1.15 billion at the end of 2024 [6]. Market Sentiment - Following the earnings release, there has been a positive shift in consensus estimates, with a 13.51% upward adjustment noted [7]. - Expeditors International holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [9]. Industry Context - Expeditors International is part of the Zacks Transportation - Services industry, which has seen C.H. Robinson Worldwide gain 4.2% over the past month. C.H. Robinson reported revenues of $4.14 billion for the quarter ended September 2025, reflecting a year-over-year decline of 10.9% [10][11].