Logistics and freight forwarding company Expeditors (NYSE:EXPD) will be reporting earnings tomorrow before market open. Here’s what to expect.
Expeditors beat analysts’ revenue expectations by 20.6% last quarter, reporting revenues of $3 billion, up 37% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Expeditors a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Expeditors’s revenue to grow 24.4% year on year to $2.83 billion, a reversal from the 33.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Expeditors has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Expeditors’s peers in the air freight and logistics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Parcel Service delivered year-on-year revenue growth of 1.4%, meeting analysts’ expectations, and GXO Logistics reported revenues up 25.5%, topping estimates by 1.5%. United Parcel Service traded down 14.6% following the results while GXO Logistics was also down 15.1%.
Read our full analysis of United Parcel Service’s results here and GXO Logistics’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the air freight and logistics stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.6% on average over the last month. Expeditors’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $115.07 (compared to the current share price of $113.65).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
