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Will Expeditors International of Washington, Inc.'s (NASDAQ:EXPD) Earnings Grow In The Next 12 Months?

Simply Wall St

Based on Expeditors International of Washington, Inc.'s (NASDAQ:EXPD) earnings update in December 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by -0.9% in the upcoming year compared with the higher past 5-year average growth rate of 10%. By 2020, we can expect Expeditors International of Washington’s bottom line to reach US$613m, a jump from the current trailing-twelve-month of US$618m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for Expeditors International of Washington

What can we expect from Expeditors International of Washington in the longer term?

Over the next three years, it seems the consensus view of the 12 analysts covering EXPD is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of EXPD's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NasdaqGS:EXPD Past and Future Earnings, April 25th 2019

From the current net income level of US$618m and the final forecast of US$705m by 2022, the annual rate of growth for EXPD’s earnings is 3.6%. This leads to an EPS of $4.15 in the final year of projections relative to the current EPS of $3.55. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 7.6% to 7.1% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Expeditors International of Washington, I've compiled three pertinent factors you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Expeditors International of Washington worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Expeditors International of Washington is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Expeditors International of Washington? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.