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Will Segmental Growth Aid Expeditors' (EXPD) Q1 Earnings?
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Expeditors International of Washington, Inc. (EXPD - Free Report) is slated to report first-quarter 2018 earnings numbers on May 8, before the market opens.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 10.9%. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. Results were aided by higher revenues. Moreover, growth was witnessed across all major divisions of the company.
Let’s see, how things shape up for this announcement.
Earnings Whispers
Our proven model shows that Expeditors is likely to beat on earnings this quarter too because it has the perfect combination of the following two key ingredients:
Zacks ESP: Expeditors has an Earnings ESP of +2.09%, representing the percentage difference between the Most Accurate estimate of 65 cents per share and the Zacks Consensus Estimate of 64 cents. A favourable Zacks ESP is indicative of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Expeditors carries a Zacks Rank #2 (Buy). Notably, stocks with a solid Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of beating estimates. Further, combined with a positive ESP, it makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Expeditors International of Washington, Inc. Price and EPS Surprise
What is Driving This Better-Than-Expected Earnings?
Growth is likely to be witnessed across all the company’s major divisions in the first quarter like the previous one. This in turn should boost the top line as well. Moreover, segmental volume growth is likely to boost results. The new tax law resulting in huge tax savings from the reduced corporate tax rate is anticipated to drive earnings in the to-be-reported quarter.
The company’s sound balance sheet is a further positive. Its asset-light business model allows it to maintain a debt-free balance sheet.
Expeditors' trailing 12-month return on equity (ROE) supports its growth potential. The company’s ROE of 22.8% compares favorably with the S&P 500 Index’s figure of 16% as well as the industry’s tally of 16.3%.
However, the bottom line could be pressurized due to high operating expenses in the quarter to be reported.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider the following stocks as these too comprise the right combination of elements to deliver an earnings beat in the upcoming releases:
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.78% and is a Zacks #3 Ranked player. The company will report first-quarter earnings on May 9.
Air Lease Corporation (AL - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3. The company will announce first-quarter earnings on May 10.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Will Segmental Growth Aid Expeditors' (EXPD) Q1 Earnings?
Expeditors International of Washington, Inc. (EXPD - Free Report) is slated to report first-quarter 2018 earnings numbers on May 8, before the market opens.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 10.9%. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. Results were aided by higher revenues. Moreover, growth was witnessed across all major divisions of the company.
Let’s see, how things shape up for this announcement.
Earnings Whispers
Our proven model shows that Expeditors is likely to beat on earnings this quarter too because it has the perfect combination of the following two key ingredients:
Zacks ESP: Expeditors has an Earnings ESP of +2.09%, representing the percentage difference between the Most Accurate estimate of 65 cents per share and the Zacks Consensus Estimate of 64 cents. A favourable Zacks ESP is indicative of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Expeditors carries a Zacks Rank #2 (Buy). Notably, stocks with a solid Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of beating estimates. Further, combined with a positive ESP, it makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Expeditors International of Washington, Inc. Price and EPS Surprise
Expeditors International of Washington, Inc. Price and EPS Surprise | Expeditors International of Washington, Inc. Quote
What is Driving This Better-Than-Expected Earnings?
Growth is likely to be witnessed across all the company’s major divisions in the first quarter like the previous one. This in turn should boost the top line as well. Moreover, segmental volume growth is likely to boost results.
The new tax law resulting in huge tax savings from the reduced corporate tax rate is anticipated to drive earnings in the to-be-reported quarter.
The company’s sound balance sheet is a further positive. Its asset-light business model allows it to maintain a debt-free balance sheet.
Expeditors' trailing 12-month return on equity (ROE) supports its growth potential. The company’s ROE of 22.8% compares favorably with the S&P 500 Index’s figure of 16% as well as the industry’s tally of 16.3%.
However, the bottom line could be pressurized due to high operating expenses in the quarter to be reported.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider the following stocks as these too comprise the right combination of elements to deliver an earnings beat in the upcoming releases:
LATAM Airlines Group S.A. has an Earnings ESP of +19.23% and a Zacks Rank #3. The company will announce first-quarter results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.78% and is a Zacks #3 Ranked player. The company will report first-quarter earnings on May 9.
Air Lease Corporation (AL - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3. The company will announce first-quarter earnings on May 10.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>