A month has gone by since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Expeditors International 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.
Earnings Beat at Expeditors in Q2
Expeditors' earnings of $1.09 per share surpassed the Zacks Consensus Estimate by 43 cents and also improved 23.9% on a year-over-year basis. Adding to this optimism, the top line not only rose 26.8% year over year to $2,580.6 million butalso surpassed the Zacks Consensus Estimate of $1863.7 million. The uptick in airfreight revenues boosted results. The coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) led to the increased usage of charters to meet customer needs.
In the quarter under review, volumes pertaining to airfreight tonnage and ocean container contracted 10% and 14%, respectively, year over year. Operating income jumped 29% to $248 million in the second quarter on the back of higher revenues.
During the June quarter, the company repurchased 0.4 million shares at an average price of $77.46 per share. The company exited the quarter with cash and cash equivalents of $1.18 billion compared with $1.23 million at the end of 2019.
Airfreight Services revenues soared 93.5% year over year to $1,434.59 million in the second quarter. Ocean Freight and Ocean Services revenues deteriorated 9.6% to $491.7 million. Moreover, Customs Brokerage and Other Services revenues decreased 12.8% year over year to $654.33 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 12.05% due to these changes.
Currently, Expeditors International has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Expeditors International has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.