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Expeditors International (EXPD) Down 2.7% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have lost about 2.7% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Expeditors in Q1
Expeditors’ first-quarter 2022 earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.77. The bottom line surged 22.75% year over year.
Mainly due to the February attack, airfreight tonnage volume and ocean container volume decreased 18% and 3%, respectively, on a year-over-year basis. Total revenues of $4,664.3 million outperformed the Zacks Consensus Estimate of $4,175.6 million and also increased 38.9% year over year. Higher revenues across all units boosted the top line.
Airfreight Services revenues increased 20.56% year over year to $1.59 billion in the first quarter. Ocean Freight and Ocean Services revenues skyrocketed more than 100% to $1.98 billion. Customs Brokerage and Other Services revenues climbed 18.55% year over year to $1.09 billion.
Operating income soared increased 19.77% to $461.76 million in the March quarter on the back of higher revenues. Total operating expenses escalated 49.3% to $4.21 billion. Due to the cyber-attack, EXPD incurred significant costs for recovering its operational and accounting systems and to enhance cybersecurity protections. Due to EXPD’s inability to process and move shipments through ports, on a timely basis, the company had to shell out approximately $40 million in incremental demurrage charges.
During the first quarter of 2021, Expeditors did not repurchase shares. It exited the March quarter with cash and cash equivalents of $1.73 billion compared with $1.53 billion at the end of 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 23.24% due to these changes.
VGM Scores
Currently, Expeditors International has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. 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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Expeditors International (EXPD) Down 2.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have lost about 2.7% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Expeditors in Q1
Expeditors’ first-quarter 2022 earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.77. The bottom line surged 22.75% year over year.
Mainly due to the February attack, airfreight tonnage volume and ocean container volume decreased 18% and 3%, respectively, on a year-over-year basis. Total revenues of $4,664.3 million outperformed the Zacks Consensus Estimate of $4,175.6 million and also increased 38.9% year over year. Higher revenues across all units boosted the top line.
Airfreight Services revenues increased 20.56% year over year to $1.59 billion in the first quarter. Ocean Freight and Ocean Services revenues skyrocketed more than 100% to $1.98 billion. Customs Brokerage and Other Services revenues climbed 18.55% year over year to $1.09 billion.
Operating income soared increased 19.77% to $461.76 million in the March quarter on the back of higher revenues. Total operating expenses escalated 49.3% to $4.21 billion. Due to the cyber-attack, EXPD incurred significant costs for recovering its operational and accounting systems and to enhance cybersecurity protections. Due to EXPD’s inability to process and move shipments through ports, on a timely basis, the company had to shell out approximately $40 million in incremental demurrage charges.
During the first quarter of 2021, Expeditors did not repurchase shares. It exited the March quarter with cash and cash equivalents of $1.73 billion compared with $1.53 billion at the end of 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 23.24% due to these changes.
VGM Scores
Currently, Expeditors International has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Expeditors International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.