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Why Is Expeditors International (EXPD) Up 8.2% Since Last Earnings Report?

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It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have added about 8.2% 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 the most recent earnings report in order to get a better handle on the important drivers.

Earnings Beat at Expeditors in Q1

Expeditors' earnings of earnings of $1.67 per share surpassed the Zacks Consensus Estimate of $1 and also skyrocketed more than 100% on a year-over-year basis. Results were aided by higher revenues. Notably, the top line not only rose 76.5% year over year to $3,357.5 million but also surpassed the Zacks Consensus Estimate of $2,405.4 million. Uptick in airfreight revenues boosted the top line.

In the quarter under review, volumes pertaining to airfreight tonnage and ocean containers both increased 29% year over year. Operating income jumped in excess of 100% to $386 million in the first quarter on the back of higher revenues. Total operating expenses escalated 70.5% $2.97 billion.

During the March quarter, the company repurchased 0.9 million of common stock at an average price of $92.98 per share. It exited the year with cash and cash equivalents of $1.79 billion compared with $1.53 million at the end of 2020.

Segmental Highlights

Airfreight Services revenues soared more than 100% year over year to $1,479.96 million in the first quarter. Ocean Freight and Ocean Services revenues jumped 94.2% to $958.18 million. Moreover, Customs Brokerage and Other Services revenues climbed 31.9% year over year to $922.4 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 33.66% due to these changes.

VGM Scores

At this time, Expeditors International has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision 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.


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