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Is a Beat in Store for Expeditors This Earnings Season?

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Expeditors International of Washington (EXPD - Free Report) is scheduled to report its third-quarter 2024 results on Nov. 5 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company has a disappointing earnings history, having missed the Zacks Consensus Estimate in two of the preceding four quarters and surpassed twice. The average miss is 2.7%.

The Zacks Consensus Estimate for EXPD’s soon-to-be-reported quarter’s earnings is pegged at $1.33 per share, revised upward by 3.10% in the past 60 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.37 billion, which indicates growth of 8.10% year over year.

Our estimate for third-quarter Airfreight Services, ocean freight and services, customs brokerage and other services is pegged at $773.1 million, $593.8 million and $924.9 million, respectively, which indicates an increase of 6.7%, 6% and 2.2% from the year-ago reported figure.

On the contrary, we expect increasing operating expenses to have hindered EXPD’s bottom-line performance in the third quarter of 2024. This rise in operating expenses is anticipated to be primarily driven by the increase in salaries and related costs. Our estimate for total third-quarter operating expenses has increased 4.6% year over year.

What Our Model Says About EXPD

Our proven model predicts an earnings beat for Expeditors this time. 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 the case here.

Expeditors has an Earnings ESP of +2.13% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

EXPD’s Q2 Highlights

Expeditors' second-quarter 2024 earnings of $1.24 per share matched the Zacks Consensus Estimate. The bottom line declined 4.6% year over year due to high costs. Total revenues of $2.44 billion beat the Zacks Consensus Estimate of $2.22 billion and increased 8.9% year over year.

Other Stocks to Consider

Here are some other stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these also have the right combination of elements to beat third-quarter 2024 earnings.

JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is scheduled to report third-quarter 2024 earnings on Oct. 29 before market open. You can see the complete list of today's Zacks #1 Rank stocks here.

JBLU surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 42%.

C.H. Robinson (CHRW - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30. The company has an Earnings ESP of +3.80 and a Zacks Rank #3.

C.H. Robinson has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 7.3%.

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