Expeditors International Earnings: Here’s Why Investors Don’t Like These Results

Expeditors International of Washington Inc. (NASDAQ:EXPD) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.70%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Expeditors International of Washington Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.33% to $0.39 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Decreased 0.06% to $1.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Expeditors International of Washington Inc. reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.4. It beat the average revenue estimate of $1.41 billion.

Quoting Management: “There is a certain stability in these quarterly results that may not be as apparent on the surface as they were re-assuring to us here,” said Peter J. Rose, Chairman and Chief Executive Officer. “We had a strong finish in March and after having swum in deep waters for so long, it’s somewhat invigorating to feel that your feet might actually be touching ground. We still have a ways to go, but despite the continued and well-publicized slide in global PC shipments, historically a large part of our tech business, our 2013 first quarter year-over-year airfreight tonnages were actually up, albeit marginally. This was the second consecutive quarter we’ve had year-over-year airfreight tonnage increases. While pricing was still somewhat volatile, it was great to see some sustained traction in year-over-year airfreight tonnage growth,” Rose went on to say.

Key Stats (on next page)…

Revenue decreased 7.99% from $1.53 billion in the previous quarter. EPS decreased 2.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.44. For the current year, the average estimate has moved down from a profit of $1.88 to a profit of $1.8 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)