Yahoo Finance Results: Expeditors International of Washington, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
Investors in Expeditors International of Washington, Inc. (NYSE:EXPD) had a good week, as its shares rose 2.7% to close at US$117 following the release of its quarterly results. Revenues were US$2.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.18 were also better than expected, beating analyst predictions by 10%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Expeditors International of Washington
Following last week's earnings report, Expeditors International of Washington's 14 analysts are forecasting 2024 revenues to be US$8.88b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 3.7% to US$4.75 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.00b and earnings per share (EPS) of US$4.67 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$108, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Expeditors International of Washington, with the most bullish analyst valuing it at US$126 and the most bearish at US$84.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 0.5% annualised decline to the end of 2024. That is a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Expeditors International of Washington is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Expeditors International of Washington's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$108, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Expeditors International of Washington going out to 2026, and you can see them free on our platform here..
We also provide an overview of the Expeditors International of Washington Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
