Shares of Expeditors International of Washington (EXPD - Free Report) shed 5.6% of value on Jan 17 to close the trading session at $76.82. The downside followed the lackluster earnings guidance released by the company for fourth-quarter 2019. Detailed results should be out on Feb 18.
Expeditors expects fourth-quarter 2019 earnings per share in the 78-81 cents range. The Zacks Consensus Estimate is currently pegged at 95 cents. Moreover, the company expects fourth-quarter operating income between $177 million and $183 million. Notably, this Seattle, WA- based company had reported operating income and earnings of $217 million $1.02 per share in fourth-quarter 2018.
The company’s president and chief executive officer Jeffrey S. Musser attributed the bearish fourth-quarter 2019 outlook to factors like “slowing of various global economies, trade disputes, and a customer base that is taking advantage of a market that appears to be changing from a supply and demand standpoint.”
In fact, Expeditors has been plagued with the above-mentioned headwinds for quite some time. Given the company’s exposure in China, it is suffering due low shipment volume. Notably, air freight revenues from North Asia declined 13% in the first nine months of 2019. In fact, revenues from Expeditors' primary unit, Airfreight Services, declined 8.2% during the same time frame. Volumes with respect to airfreight tonnage also declined in this period.
Due to these woes, the stock has underperformed its industry as well as the S&P 500 index in a year’s time. While the stock has gained 12.3% over the past year, its industry and the S&P 500 index have appreciated 12.9% and 25.6%, respectively.
Though the Phase 1 trade deal between United States and China — the two largest economic superpowers across the globe — bodes well as it provides tariff relief, the development will not affect Expeditor’s quarterly results as the agreement was signed this January. Consequently, quarterly shipment volumes are likely to reflect a decline as well, which, in turn, might have affected Expeditor’s fourth-quarter performance.
Zacks Rank & Key Picks
Expeditors currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the Zacks Transportation sector are Delta Air Lines (DAL - Free Report) , Ship Finance International Limited (SFL - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Delta, Ship Finance International and Grupo Aeroportuario have gained more than 1%, 11% and 30%, respectively, over the past six months.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of Expeditors International of Washington (EXPD - Free Report) shed 5.6% of value on Jan 17 to close the trading session at $76.82. The downside followed the lackluster earnings guidance released by the company for fourth-quarter 2019. Detailed results should be out on Feb 18.
Expeditors expects fourth-quarter 2019 earnings per share in the 78-81 cents range. The Zacks Consensus Estimate is currently pegged at 95 cents. Moreover, the company expects fourth-quarter operating income between $177 million and $183 million. Notably, this Seattle, WA- based company had reported operating income and earnings of $217 million $1.02 per share in fourth-quarter 2018.
The company’s president and chief executive officer Jeffrey S. Musser attributed the bearish fourth-quarter 2019 outlook to factors like “slowing of various global economies, trade disputes, and a customer base that is taking advantage of a market that appears to be changing from a supply and demand standpoint.”
In fact, Expeditors has been plagued with the above-mentioned headwinds for quite some time. Given the company’s exposure in China, it is suffering due low shipment volume. Notably, air freight revenues from North Asia declined 13% in the first nine months of 2019. In fact, revenues from Expeditors' primary unit, Airfreight Services, declined 8.2% during the same time frame. Volumes with respect to airfreight tonnage also declined in this period.
Due to these woes, the stock has underperformed its industry as well as the S&P 500 index in a year’s time. While the stock has gained 12.3% over the past year, its industry and the S&P 500 index have appreciated 12.9% and 25.6%, respectively.
Though the Phase 1 trade deal between United States and China — the two largest economic superpowers across the globe — bodes well as it provides tariff relief, the development will not affect Expeditor’s quarterly results as the agreement was signed this January. Consequently, quarterly shipment volumes are likely to reflect a decline as well, which, in turn, might have affected Expeditor’s fourth-quarter performance.
Zacks Rank & Key Picks
Expeditors currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the Zacks Transportation sector are Delta Air Lines (DAL - Free Report) , Ship Finance International Limited (SFL - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Delta, Ship Finance International and Grupo Aeroportuario have gained more than 1%, 11% and 30%, respectively, over the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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