Expeditors International of Washington (EXPD) Up 1.4% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Expeditors International (EXPD). Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Expeditors International of Washington due for a pullback? 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 drivers.

Earnings Miss at Expeditors in Q4

Expeditors' fourth-quarter 2023 earnings of $1.09 per share missed the Zacks Consensus Estimate of $1.21. The bottom line plunged 21% year over year due to volume woes. Total revenues of $2.28 billion beat the Zacks Consensus Estimate of $2.24 billion but declined 33.8% year over year.

Airfreight tonnage and ocean container volumes dipped 3% and 10%, respectively. Operating income decreased 40% to $199 million. Total operating expenses fell 33.4% to $2.08 billion.

Airfreight Services revenues tumbled 28.1% year over year to $866.1 million in the final quarter of 2023. Ocean freight and ocean services revenues decreased 54.5% to $511.9 million. Customs Brokerage and other services revenues shrank 19.1% year over year to $899.8 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -7.08% due to these changes.

VGM Scores

Currently, Expeditors International of Washington has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 indicates a downward shift. Notably, Expeditors International of Washington 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 of Washington belongs to the Zacks Transportation - Services industry. Another stock from the same industry, Avis Budget Group (CAR), has gained 15.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.

Avis Budget reported revenues of $2.76 billion in the last reported quarter, representing a year-over-year change of -0.3%. EPS of $7.10 for the same period compares with $10.46 a year ago.

For the current quarter, Avis Budget is expected to post a loss of $2.31 per share, indicating a change of -129.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -52.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Avis Budget. Also, the stock has a VGM Score of C.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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