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Is a Beat in Store for Expeditors (EXPD) in Q1 Earnings?

Expeditors International of Washington Inc EXPD is scheduled to report first-quarter 2021 results on May 4.

The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by approximately 3% in the past 60 days. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters. It has a trailing four-quarter earnings surprise of 23.9%, on average.

Let’s see whether the company is able to retain its beat streak in its upcoming quarterly results.


Factors to Note

Pandemic-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) has increased the usage of charters to meet customer needs. This is expected to have boosted Airfreight Services revenues, as has been the case in the past few quarters. The anticipated rise in revenues in the Airfreight Services segment, Expeditors’ primary revenue generator, is likely to have driven the top line in the first quarter as well.

Notably, the Zacks Consensus Estimate for total revenues in the first quarter indicates a 26.5% jump from the year-ago quarter’s reported number.

However, coronavirus-led slowdown in the economy has been exerting pressure on Expeditors’ volumes.   Additionally, sharp increase in Expeditors’ operating expenses might have had hurt the company’s bottom-line performance.

Earnings Whispers

The proven Zacks model predicts an earnings beat for Expeditors this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Expeditors has an earnings ESP of +4.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Expeditors carries a Zacks Rank #2.

Highlights of Q4 Earnings

Expeditors' earnings of $1.16 per share surpassed the Zacks Consensus Estimate of $1.04 and also increased 43.2% on a year-over-year basis. Also, the top line rallied 55% year over year to $3,169.2 million and surpassed the Zacks Consensus Estimate of $2,397 million. The uptick in airfreight revenues boosted results.

Stocks to Consider

Investors interested in the broader Transportation sector may consider SkyWest, Inc. SKYW, Werner Enterprises, Inc. WERN and Westinghouse Air Brake Technologies Corporation WAB as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

SkyWest has an Earnings ESP of +35.34% and a Zacks Rank of 3, currently. The company is set to release first-quarter 2021 earnings numbers on Apr 29.

Werner has an Earnings ESP of +2.78% and a Zacks Rank of 3 at present. The company will release first-quarter 2021 results on Apr 28.

Westinghouse Air Brake Technologies has an Earnings ESP of +5.33% and is Zacks #2 Ranked, presently. The company will release first-quarter 2021 results on Apr 29.

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Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB): Free Stock Analysis Report
Werner Enterprises, Inc. (WERN): Free Stock Analysis Report
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