It has been about a month since the last earnings report for Expeditors International (EXPD Quick QuoteEXPD - Free Report) . Shares have lost about 1.5% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.

Earnings Miss at Expeditors in Q2

Expeditors' second-quarter 2023 earnings of $1.30 per share fell short of the Zacks Consensus Estimate of $1.34. Moreover, the bottom line plunged 42.7% year over year. Total revenues of $2,239.8 million lagged the Zacks Consensus Estimate of 2,878.8 million and decreased 51.3% year over year. Results were hurt by the lackluster demand scenario.

A dip in volumes also played spoilsport. Airfreight tonnage and ocean container volumes tumbled 15% and 13% year over year, respectively. Operating income declined 51% to $278 million. Total operating expenses fell 51% to $1.99 billion.

Airfreight services revenues decreased 53% year over year to $525 million in the second quarter of 2023. Ocean freight and ocean services revenues fell 66.2% to $593.8 million. Customs brokerage and other services revenues declined 27.9% year over year to $894.8 million.

In the reported quarter, EXPD repurchased 6 million shares at an average price of $114.61 per share. Expeditors also pays dividends of 69 cents per share on a semi-annual basis. It exited the June-end quarter with cash and cash equivalents of $1.69 billion compared with $2.03 billion at 2022 end.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Expeditors International has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Expeditors International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.