Expeditors (EXPD) to Report Q4 Earnings: What to Expect?
Expeditors International of Washington EXPD is scheduled to report fourth-quarter 2023 results on Feb 20, before market open.
The company has an unimpressive earnings surprise history, having outperformed the Zacks Consensus Estimate in only one of the preceding four quarters and missing in the other three, the average miss being 9.39%. The Zacks Consensus Estimate for EXPD’s soon-to-be reported quarter’s earnings has increased 1.68% in the past 60 days to $1.21 per share.
We expect Expeditors’ performance in the to-be-reported quarter to have been boosted by a reduction in total revenues.
The Zacks Consensus Estimate for EXPD’s fourth-quarter 2023 revenues is pegged at $2.24 billion, indicating a 35.1% decline from the fourth-quarter 2022 actual. The top line is likely to have been affected by a volume decrease in terms of airfreight tonnage and ocean containers, as the demand and rate fell headlong. We expect airfreight tonnage volume and ocean container volume to decrease 7.7% and 9%, respectively, from the fourth-quarter 2022 actuals in the December-end quarter.
EXPD's bottom line is likely to have been affected by a rise in capital expenses. The Zacks Consensus Estimate for EXPD’s fourth-quarter 2023 earnings per share indicates a 12.32% decline from the fourth-quarter 2022 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Expeditors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Expeditors has an Earnings ESP of -1.33% (the Most Accurate Estimate is pegged at $1.19, 2 cents below the Zacks Consensus Estimate) and a Zacks Rank #3 at present.
Highlights of Q3
EXPD’s quarterly earnings of $1.16 per share missed the Zacks Consensus Estimate of $1.25. The decline in volume affected the bottom line, as it plummeted 54.3% year over year. Total revenues of $2.19 billion missed the Zacks Consensus Estimate of $2.32 billion and decreased 49.8% year over year. The company’s results deteriorated as volumes declined and service revenues fell.
Expeditors International of Washington, Inc. Price and EPS Surprise
Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this time around.
Westinghouse Air Brake Technologies WAB or Wabteccurrently has an Earnings ESP of +2.76% and Zacks Rank #2. The company is expected to release its earnings for the soon-to-be-reported quarter on Feb 14. You can see the complete list of today’s Zacks #1 Rank stocks here.
WAB’s earnings surprise history has been outstanding, wherein it has outpaced the Zacks Consensus Estimate in three of the four preceding quarters and met once, the average beat being 7.11%.
Scorpio Tankers STNG has an Earnings ESP of +4.12% and Zacks Rank #3 at present. It is expected to release its earnings for the soon-to-be-reported quarter on Feb 14.
STNG has an impressive earnings surprise history, wherein it has surpassed the Zacks Consensus Estimate in three of the past four quarters and missed in one, the average beat being 7.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
