Expeditors (EXPD) Q3 Earnings Report Preview: What To Look For

Logistics and freight forwarding company Expeditors (NYSE:EXPD) will be announcing earnings results tomorrow before the bell. Here’s what to look for.

Expeditors beat analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $2.44 billion, up 8.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ Airfreight revenue estimates. On the other hand, its EPS missed.

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 12.9% year on year to $2.47 billion, a reversal from the 49.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.33 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 8 analysts). 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 Q3 results, giving us a hint as to what we can expect. C.H. Robinson Worldwide delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 2.4%, and United Parcel Service reported revenues up 5.6%, in line with consensus estimates. C.H. Robinson Worldwide traded down 6.1% following the results while United Parcel Service was up 4.7%.

Read our full analysis of C.H. Robinson Worldwide’s results here and United Parcel Service’s results here.

Investors in the air freight and logistics segment have had steady hands going into earnings, with share prices flat 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 $115.80 (compared to the current share price of $119.06).

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