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Expeditors International (EXPD) Down 2.1% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Expeditors International (EXPD). Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Expeditors International due for a breakout? 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 catalysts.

Earnings Beat at Expeditors in Q2

Expeditors' earnings of $1.84 per share surpassed the Zacks Consensus Estimate of $1.63 and also surged 68.8% on a year-over-year basis. Results were aided by higher revenues. Also, the top line rose 39.9% year over year to $3,609.1 million and surpassed the Zacks Consensus Estimate of $2,524.7 million as well.

In the quarter under review, volumes pertaining to airfreight tonnage and ocean containers increased 37% and 34% year over year, respectively. Operating income surged 66% to $411 million in the second quarter on the back of better revenues. Total operating expenses escalated 47.8% $3.2 billion.

During the June quarter, the company repurchased 0.5 million of common stock at an average price of $124.94 per share. It exited the second quarter of 2021 with cash and cash equivalents of $1.67 billion compared with $1.53 billion at the end of 2020.

Segmental Highlights

Airfreight Services revenues increased 20% year over year to $1,523.57 million in the second quarter. Ocean Freight and Ocean Services revenues surged more than 100% to $1,098.55 million. Moreover, Customs Brokerage and Other Services revenues climbed 51.4% year over year to $922.4 million.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 30.61% due to these changes.

VGM Scores

Currently, Expeditors International has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 this revision 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.


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