Expeditors International of Washington, Inc. (NYSE:EXPD) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$2.7b arriving 8.3% ahead of forecasts. Statutory earnings per share (EPS) were US$1.34, 7.9% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Expeditors International of Washington after the latest results.
Taking into account the latest results, the current consensus, from the 14 analysts covering Expeditors International of Washington, is for revenues of US$10.7b in 2025. This implies a discernible 5.5% reduction in Expeditors International of Washington's revenue over the past 12 months. Statutory earnings per share are forecast to decline 13% to US$5.48 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$10.4b and earnings per share (EPS) of US$5.34 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for Expeditors International of Washington
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$113, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Expeditors International of Washington, with the most bullish analyst valuing it at US$128 and the most bearish at US$86.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Expeditors International of Washington's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 11% to the end of 2025. This tops off a historical decline of 2.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.1% per year. So while a broad number of companies are forecast to grow, unfortunately Expeditors International of Washington is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Expeditors International of Washington following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$113, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Expeditors International of Washington analysts - going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Expeditors International of Washington (of which 1 is potentially serious!) you should know about.
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