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Expeditors International Beat Q2 Estimates, Stock Zigzags

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EXPD’s second-quarter earnings

The second-quarter earnings season for major US road transporters culminated with Expeditors International of Washington’s (EXPD) results before the market opened on August 7. The third-party logistics giant beat Thomson Reuters–surveyed analysts’ adjusted EPS estimate of $0.78 by $0.01. Its adjusted EPS of $0.79 rose 31.7% YoY (year-over-year) from $0.60 in Q2 2017.

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Performance of EXPD stock

On August 7, EXPD stock opened at $70.62, down 8.9% from its closing price of $77.49 on August 6. After zigzagging, the stock closed at $72.93, down 5.9% from its closing price on August 6. EXPD just beat analysts’ revenue and earnings estimates, which impacted the stock. On August 8, EXPD stock closed at $73.39, up 0.63% from its closing price on August 7.

Looking at EXPD’s 52-week high of $78.16, the current price is trading at a 6.5% discount. Its second-quarter earnings, which were robust for the trucking sector, were due to higher freight volumes and pricing gains. Let’s look at the YTD (year-to-date) returns of some major US truckers as of August 8.

  • Expeditors International of Washington (EXPD): 13.4%
  • C.H. Robinson Worldwide (CHRW): 7.8%
  • J.B. Hunt Transport Services (JBHT): 6%
  • XPO Logistics (XPO): 13.5%
  • Knight-Swift Transportation (KNX): -24.6%
  • Werner Enterprises (WERN): -4.9%

The iShares U.S. Industrials ETF (IYJ) returned 2.8% YTD. It has weights of 7% and 4.8%, respectively, for major railroad companies and airline companies.

About EXPD

Expeditors International of Washington is a global logistics major based in Seattle, Washington. The third-party logistics company has a presence at ~250 locations across six continents. The major services it offers include the consolidation or forwarding of air and ocean freight and customs brokerage. It also offers time-sensitive transportation, vendor consolidation, cargo insurance, warehousing and distribution, and customized logistics solutions.

In this series on EXPD’s second-quarter earnings, we’ll look at its segments and operating performance. We’ll also look at analysts’ recommendations for the company and its peers.

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