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Expeditors International (EXPD) Up 7.1% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . 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 Earnings In Line

Expeditors' second-quarter 2024 earnings of $1.24 per share matched the Zacks Consensus Estimate. The bottom line declined 4.6% year over year due to high costs. Total revenues of $2.44 billion beat the Zacks Consensus Estimate of $2.22 billion and increased 8.9% year over year.

Airfreight tonnage volume increased 15% and ocean container volume decreased 3% year over year. We had expected airfreight tonnage to increase 4% and ocean container volumes to decline 5.7% from second-quarter 2023 actuals.

Operating income fell 10% year over year to $224 million. Total operating expenses increased 11.1% to $2.22 billion.

Airfreight Services revenues tumbled 14.1% year over year to $860.3 million in the second quarter of 2024. Ocean freight and ocean services revenues increased 9.7% to $651.7 million. Customs Brokerage and other services revenues increased 3.6% year over year to $927 million.

In the second quarter of 2024, Expeditors repurchased 0.9 million shares at an average price of $116.8 per share. EXPD returned $205 million to its shareholders via share repurchases and dividends.

EXPD exited the second quarter of 2024 with cash and cash equivalents of $1.27 billion compared with $1.51 billion in 2023-end.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Expeditors International has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been broadly trending downward 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.

Performance of an Industry Player

Expeditors International belongs to the Zacks Transportation - Services industry. Another stock from the same industry, C.H. Robinson Worldwide (CHRW - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

C.H. Robinson reported revenues of $4.48 billion in the last reported quarter, representing a year-over-year change of +1.4%. EPS of $1.15 for the same period compares with $0.90 a year ago.

C.H. Robinson is expected to post earnings of $1.08 per share for the current quarter, representing a year-over-year change of +28.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

C.H. Robinson has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.


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