Back to top

Image: Bigstock

Why Is Expeditors International (EXPD) Up 8.6% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have added about 8.6% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at Expeditors in Q4

Expeditors' earnings of $1.16 per share surpassed the Zacks Consensus Estimate of $1.04 and also improved 43.2% on a year-over-year basis.

Adding to this optimism, the top line not only rose 55% year over year to $3,169.2 million but also surpassed the Zacks Consensus Estimate of $2,397 million. The uptick in airfreight revenues boosted results.

In the quarter under review, volumes pertaining to airfreight tonnage increased 10% year over year while the same pertaining to ocean containers climbed 19%. Operating income jumped 56% to $282 million in the fourth quarter on the back of higher revenues.

During the December quarter, the company repurchased 0.2 million of common stock at an average price of $90.81 per share. It exited the year with cash and cash equivalents of $1.53 billion compared with $1.23 million at the end of 2019.

Airfreight Services revenues soared more than 100% year over year to $1,547.22 million in the fourth quarter. Ocean Freight and Ocean Services revenues improved 45.3% to $755.25 million. Moreover, Customs Brokerage and Other Services revenues climbed 13% year over year to $866.72 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 11.14% due to these changes.

VGM Scores

Currently, Expeditors International has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Expeditors International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Expeditors International of Washington, Inc. (EXPD) - free report >>

Published in