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Expeditors Gears Up to Report Q2 Earnings: Is a Beat in Store?

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Key Takeaways

  • {\"0\":\"EXPD\'s Q2 EPS estimate is $1.24, flat year over year but revised up 1.64% in the past 60 days.\",\"1\":\"Revenue is expected to dip 1.62% to $2.40B, weighed by weak air and ocean freight volumes. \",\"2\":\"EXPD holds a Zacks Rank #3 and Earnings ESP of +0.11%, indicating a likely earnings beat.\"}

Expeditors International of Washington (EXPD - Free Report) is scheduled to report second-quarter 2025 results on Aug 5, 2025.

Expeditors has a solid earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched the mark in the remaining quarter, delivering an average beat of 13.28%.

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Image Source: Zacks Investment Research

Let’s see how things have shaped up for Expeditors this earnings season.

Factors Likely to Have Influenced EXPD’s Q2 Performance

The Zacks Consensus Estimate for EXPD’s second-quarter 2025 earnings has been revised upward by 1.64% in the past 60 days to $1.24 per share. The consensus mark remained unchanged from the year-ago actual.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EXPD’s second-quarter 2025 revenues is pegged at $2.40 billion, indicating a 1.62% decline year over year.

We expect the company’s second-quarter performance to have been weighed down by lower revenues. Our estimate for second-quarter Airfreight Services and ocean freight and services is pegged at $807.6 million and $622.8 million, respectively, which indicates a decrease of 6.1% and 4.4% from the year-ago reported figure. Customs brokerage and other services are pegged at $933.9 million, indicating a mere 0.7% increase from second-quarter 2024 actuals.

While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven its bottom line.

Expeditors' bottom line is being hurt by high capital expenditures. Management believes that in this inflation-induced high-interest-rate scenario, shippers continue to face uncertain demand for their products, as consumers remain cautious due to the reduction of their purchasing power. The uncertain demand scenario, trade tensions and foreign exchange-related woes are major headwinds for EXPD.

What Our Model Says About EXPD

Our proven model predicts 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. 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 +0.11% and a Zacks Rank #3 at present.

Highlights of EXPD’s Q1 Earnings

Expeditors’ first-quarter 2025 earnings of $1.47 per share beat the Zacks Consensus Estimate of $1.30. The bottom line increased 26% year over year, owing to strong growth in air tonnage and ocean volumes. Total revenues of $2.66 billion beat the Zacks Consensus Estimate of $2.42 billion and increased 20.8% year over year.

Other Stocks to Consider

Here are a few 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 reporting cycle.

GXO Logistics (GXO - Free Report) , a pure-play contract logistics provider, is headquartered in Greenwich, CT.  GXO currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. The company is slated to report second-quarter 2025 results on Aug. 5.

Increased e-commerce, automation and outsourcing are likely to aid the company’s results. Cost-cutting efforts are also likely to have boosted the bottom-line performance of GXO. The company beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average beat being 3.9%.

Star Bulk Carriers Corp.(SBLK - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank of 3. The company is slated to report second-quarter 2025 results on Aug. 6.

SBLK’s earnings missed the Zacks Consensus Estimate in two of the last four quarters, outpaced the mark once and matched the mark in the remaining quarter. The average beat was 12.31%.

The Zacks Consensus Estimate for SBLK’s second-quarter 2025 earnings has been revised downward by 25% in the past 60 days to 3 cents per share.

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