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Why Is Expeditors (EXPD) Up 3.7% Since Its Last Earnings Report?

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A month has gone by since the last earnings report for Expeditors International of Washington, Inc. (EXPD - Free Report) . Shares have added about 3.7 % in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is EXPD due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Fourth-quarter results

The company’s earnings (excluded 21 cents from non-recurring items) of 71 cents per share surpassed the Zacks Consensus Estimate of 64 cents. Earnings increased 16.4% on a year-over-year basis. Results were aided by higher revenues.

Revenues came in at $1.9 billion outpacing the Zacks Consensus Estimate of $1.8 billion. Revenues improved 16% from the year-ago figure. Growth was witnessed across all major divisions of the company. Volumes with respect to airfreight tonnage and ocean container increased 6% and 1%, respectively, in the reported quarter.

Gross profit (net revenue) increased 15% year over year in the final quarter of 2017 to $628.81 million. Gross margin (yield) came in at 33.1% in the reported quarter. The comparable figure was 33.41% in the year-ago quarter. The company exited 2017 with cash and cash equivalents of $1.05 billion compared with $974.44 million at the end of 2016.

Segmental Revenues
 
Airfreight Services revenues improved 24% year over year to $854.45 million in the fourth quarter. Ocean Freight and Ocean Services revenues increased 3.6% year over year to $521.32 million. Customs Brokerage and Other Services revenues increased 16.8 % year over year to approximately $525.61 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter. In the past month, the consensus estimate has shifted by 7.6% due to these changes.

Expeditors International of Washington, Inc. Price and Consensus

 

VGM Scores

At this time, EXPD has an average Growth Score of C, however its Momentum is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.

Outlook

Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Interestingly, EXPD has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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