Expeditors International (EXPD) Down 6.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Expeditors International (EXPD). Shares have lost about 6.4% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Expeditors in Q1
Expeditors' first-quarter 2023 earnings of $1.45 per share surpassed the Zacks Consensus Estimate of $1.36. However, the bottom line decreased 29.3% year over year. Total revenues of $2,592.6 million lagged the Zacks Consensus Estimate of $3,149.5 million and decreased 44.4% year over year. Results were hurt by the lackluster demand scenario.
Airfreight tonnage and ocean container volumes decreased 6% and 26%, respectively. Operating income declined 40% to $276 million. Total operating expenses fell 44.9% to $2.32 billion.
Airfreight Services revenues decreased 43.4% year over year to $904.9 million in the first quarter of 2023. Ocean Freight and ocean services revenues fell 64.7% to $697.3 million. Customs Brokerage and other services revenues declined 9.9% year over year to $990.38 million.
In first-quarter 2023, Expeditors rewarded its shareholders to the tune of $213 million through dividends and buybacks. In the reported quarter, EXPD repurchased 1,959 million shares at an average price of $108.98 per share. It exited the March-end quarter with cash and cash equivalents of $2.35 billion compared with $2.03 billion at the prior-quarter end.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Expeditors International has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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.
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Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
