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What's in the Cards for Expeditors (EXPD) in Q1 Earnings?
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Expeditors International of Washington (EXPD - Free Report) is scheduled to report first-quarter 2023 results on May 2, before market open.
The Zacks Consensus Estimate for EXPD’s first-quarter 2023 earnings has been revised downward by 10.5% in the past 60 days. However, the company has an impressive earnings surprise history, having surpassed the consensus estimate in three of the preceding four quarters (missed once). The average beat being 5.7%.
Given this backdrop, lets unearth the reasons which are likely to have influenced Expeditors’ first-quarter 2023 earnings.
Expeditors International of Washington, Inc. Price and EPS Surprise
We expect supply-chain woes to have hurt Expeditors’ performance in the quarter under review. The Zacks Consensus Estimate for revenues in the Airfreight Services, and Ocean Freight and Ocean Services segments is pegged at $971 million and $1.01 billion, indicating declines of 39.3% and 48.7%, respectively, from the year-ago quarter’s reported numbers.
Moreover, airfreight tonnage volume and ocean container volume might have also negatively impacted EXPD’s performance in the quarter to be reported. Our estimate for total revenues indicates a decline of 33.5% year over year. However, the Zacks Consensus Estimate for Customs Brokerage and Other Services’ revenues is pegged at $1.1 billion, indicating a negligible rise from the prior-year-quarter reported number.
Higher capital expenses might have also hurt the bottom line. We expect first-quarter 2023 earnings to decline 34.2% year over year despite EXPD’s cost-cutting initiatives.
What Our Model Says
Our proven model does not conclusively predict 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 odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Expeditors has an Earnings ESP of -0.37% and a Zacks Rank #3.
Highlights of Q4
Expeditors' fourth-quarter 2022 earnings of $1.38 per share missed the Zacks Consensus Estimate of $2.09 and dipped 48% year over year. Total revenues of $3,441.52 million lagged the consensus estimate of $4,173.4 million and decreased 36% year over year.
Stocks to Consider
Here we present some stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +85.71% and carries a Zacks Rank #2. It will release first-quarter 2023 results on Apr 27.
The company delivered a trailing four-quarter earnings surprise of 7.8%, on average. The Zacks Consensus Estimate for AAL’s first-quarter 2023 earnings has surged 101.3% year over year.
Image: Bigstock
What's in the Cards for Expeditors (EXPD) in Q1 Earnings?
Expeditors International of Washington (EXPD - Free Report) is scheduled to report first-quarter 2023 results on May 2, before market open.
The Zacks Consensus Estimate for EXPD’s first-quarter 2023 earnings has been revised downward by 10.5% in the past 60 days. However, the company has an impressive earnings surprise history, having surpassed the consensus estimate in three of the preceding four quarters (missed once). The average beat being 5.7%.
Given this backdrop, lets unearth the reasons which are likely to have influenced Expeditors’ first-quarter 2023 earnings.
Expeditors International of Washington, Inc. Price and EPS Surprise
Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote
We expect supply-chain woes to have hurt Expeditors’ performance in the quarter under review. The Zacks Consensus Estimate for revenues in the Airfreight Services, and Ocean Freight and Ocean Services segments is pegged at $971 million and $1.01 billion, indicating declines of 39.3% and 48.7%, respectively, from the year-ago quarter’s reported numbers.
Moreover, airfreight tonnage volume and ocean container volume might have also negatively impacted EXPD’s performance in the quarter to be reported. Our estimate for total revenues indicates a decline of 33.5% year over year. However, the Zacks Consensus Estimate for Customs Brokerage and Other Services’ revenues is pegged at $1.1 billion, indicating a negligible rise from the prior-year-quarter reported number.
Higher capital expenses might have also hurt the bottom line. We expect first-quarter 2023 earnings to decline 34.2% year over year despite EXPD’s cost-cutting initiatives.
What Our Model Says
Our proven model does not conclusively predict 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 odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Expeditors has an Earnings ESP of -0.37% and a Zacks Rank #3.
Highlights of Q4
Expeditors' fourth-quarter 2022 earnings of $1.38 per share missed the Zacks Consensus Estimate of $2.09 and dipped 48% year over year. Total revenues of $3,441.52 million lagged the consensus estimate of $4,173.4 million and decreased 36% year over year.
Stocks to Consider
Here we present some stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +85.71% and carries a Zacks Rank #2. It will release first-quarter 2023 results on Apr 27.
The company delivered a trailing four-quarter earnings surprise of 7.8%, on average. The Zacks Consensus Estimate for AAL’s first-quarter 2023 earnings has surged 101.3% year over year.
Copa Holdings (CPA - Free Report) has an Earnings ESP of +19.57% and sports a Zacks Rank #1. It will release first-quarter 2023 results on May 10. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPA’s first-quarter 2023 earnings has improved more than 100% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.