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Expeditors International (EXPD) Down 5% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have lost about 5% in that time frame, underperforming the S&P 500.

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

Earnings Beat at Expeditors in Q3

Expeditors' earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 90 cents. Meanwhile, the bottom line was flat on a year-over-year basis. However, total revenues of $2.07 billion missed the Zacks Consensus Estimate of $2.15 billion and also dipped 1% year over year. Volumes with respect to airfreight tonnage and ocean container contracted 7% and 2%, respectively, year over year.

Gross profit (net revenues) inched up nearly 2% year over year to $674.36 million. Gross margin (yield) came in at 32.5% compared with 31.6% in the year-ago quarter.

As of Sep 30, 2019, the company repurchased 4.1 million shares at an average price of $72.6 per share. The company exited the quarter with cash and cash equivalents of $1.22 billion compared with $923.74 million at the end of 2018.

Segmental Revenues

Airfreight Services revenues declined 14.1% year over year to $715.45 million in the third quarter. Ocean Freight and Ocean Services revenues also decreased slightly to $585.37 million. However, Customs Brokerage and Other Services revenues rose 15.2% year over year to approximately $774.03 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

At this time, Expeditors International has a nice Growth Score of B, a grade with the same score on the momentum front. 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Expeditors International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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