Expeditors International of Washington, Inc. (NYSE:EXPD) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 4.9% to hit US$2.7b. Statutory earnings per share (EPS) came in at US$1.47, some 9.1% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about Expeditors International of Washington. View them for free.NYSE:EXPD Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, the 13 analysts covering Expeditors International of Washington provided consensus estimates of US$10.3b revenue in 2025, which would reflect a discernible 6.7% decline over the past 12 months. Statutory earnings per share are expected to sink 14% to US$5.29 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$10.6b and earnings per share (EPS) of US$5.51 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

View our latest analysis for Expeditors International of Washington

Despite the cuts to forecast earnings, there was no real change to the US$108 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Expeditors International of Washington analyst has a price target of US$117 per share, while the most pessimistic values it at US$86.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. Over the past five years, revenues have declined around 0.1% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 8.8% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 2.9% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Expeditors International of Washington to suffer worse than the wider industry.

Story Continues

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Expeditors International of Washington. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$108, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Expeditors International of Washington analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  1 warning sign for Expeditors International of Washington that you should be aware of.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments