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Is a Beat in Store for Expeditors (EXPD) in Q1 Earnings?

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Expeditors International of Washington (EXPD - Free Report) is scheduled to report first-quarter 2022 financial numbers on May 3.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 34.2%.

Let’s see how things are shaping up for Expeditors this earnings season.

Factors to Note

The increased usage of charters to meet customer needs amid coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) is likely to have driven Airfreight Services revenues, as has been the case over the past few quarters. The Zacks Consensus Estimate for first-quarter Airfreight Services revenues indicates an approximate 8% rise from the year-ago reported number. The anticipated increase in revenues at this primary division is likely to have driven EXPD’s top line in the first quarter. The consensus mark for total revenues in the first quarter suggests a 16.9% jump from the first quarter of 2021.

However, labor and infrastructure constraints, and congestion at the ocean ports due to labor and equipment shortages, are likely to have hurt Expeditors’ first-quarter performance. Additionally, escalating operating expenses across all segments might have dented the company’s bottom line.

Earnings Whispers

The proven Zacks model predicts an earnings beat for Expeditors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Expeditors has an Earnings ESP of +3.12% as the Most Accurate Estimate is pegged at $1.76, while the Zacks Consensus Estimate is poised at $1.71. 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 #3.

Highlights of Q4 Earnings

Expeditors’ fourth-quarter 2021 earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.02. The bottom line surged more than 100% year over year. Results benefited from higher airfreight tonnage volumes. Total revenues of $5,396.3 million outperformed the Zacks Consensus Estimate of $4,257 million and also increased significantly year over year. Higher revenues across all segments boosted the top line.

Other Stocks to Consider

Investors interested in the broader Transportation sector may also consider Old Dominion Freight Line (ODFL - Free Report) and Norfolk Southern Corporation (NSC - Free Report) . These companies also possess the right combination of elements to beat on earnings in this reporting cycle.

Old Dominion has an Earnings ESP of +1.14% and a Zacks Rank #3. ODFL is set to release first-quarter 2022 earnings numbers on Apr 27.

Old Dominion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.5%.

Norfolk Southern has an Earnings ESP of +0.28% and a Zacks Rank #3. NSC will announce first-quarter 2022 results on Apr 27.

Norfolk Southern’s earnings has also trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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