Expeditors boasts a robust moat, evidenced by achieving high ROE over decades while using no leverage. The company's scale and network effect combine with unique compensation practices that foster decentralized accountability and entrepreneurial spirit. Recent revenue spike and later normalization allow us to validate alignment to shareholders in the resulting compensation of key executives.
EXPD's fourth-quarter results get a boost from a double-digit year-over-year increase in airfreight tonnage and ocean container volumes.
The headline numbers for Expeditors International (EXPD) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Expeditors International (EXPD) came out with quarterly earnings of $1.68 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.09 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for Expeditors International (EXPD), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Expeditors' fourth-quarter bottom line is expected to have been hurt by elevated operating expenses.
ROE is a great indicator, perhaps the best indicator, of management skill in capital allocation. Expeditors has a long track record of high returns on equity and recently displayed additional discipline by returning large windfall profits to shareholders. The combination of a globally diversified revenue base, zero debt, and low capex, means the business should continue to enjoy excess cash flow for many years to come.
EXPD's top line is bolstered by strong segmental performance. However, geopolitical uncertainties and elevated operating expenses are major headwinds.
The heavy selling pressure might have exhausted for Expeditors International (EXPD) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
Expeditors International (EXPD) reported earnings 30 days ago. What's next for the stock?
EXPD's efforts to reward its shareholders through dividends and buybacks are commendable.
EXPD's revenues increase 37% year over year in the third quarter of 2024.