These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, Benchmark analyst Christopher Kuhn maintained a Hold rating on Expeditors International of Washington, Inc. (NYSE:EXPD), noting the company’s ability to adapt to volatile market conditions in ocean and air freight. Expeditors International’s fourth-quarter results mirrored those of the third quarter, with the company reporting revenue 11% above Benchmark’s expectations and earnings per share (EPS) of $1.68, a 54% increase year-over-year, surpassing the analyst’s estimate of $1.35 and FactSet’s consensus of $1.43. The company, currently valued at $16.6 billion, has maintained strong financial performance with a 14% year-over-year revenue growth to $10.6 billion in the last twelve months. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The analyst acknowledged that while they anticipated the company to outperform revenue estimates based on loaded import data and results from other forwarding companies, they underestimated Expeditors International’s cost control measures. These measures, particularly in purchased transportation and other expenses, were primarily responsible for the earnings beat. InvestingPro data reveals that despite relatively weak gross profit margins of 13.3%, the company maintains robust financial health with a strong return on equity of 30% and an impressive Altman Z-Score of 7.13, indicating very low bankruptcy risk.
Despite the better-than-expected results, Kuhn highlighted the difficulty in predicting future global air and ocean supply conditions due to various factors. These include potential disruptions from a looming port strike, longer transit times caused by issues in the Red Sea, and uncertainties surrounding the elimination of de-minimis exemptions, tariffs, and the duration of the Red Sea disruption. Notably, InvestingPro highlights that the company has maintained dividend payments for 32 consecutive years and holds more cash than debt on its balance sheet, providing stability amid market uncertainties. InvestingPro subscribers have access to over 10 additional key insights about EXPD’s financial health and market position.
Kuhn also pointed out that while the company has a strong balance sheet with no debt and a proven track record of navigating downturns, the results seen in the third and fourth quarters may not be sustainable. As such, Benchmark’s estimates for the company remain largely unchanged.
The analyst concluded by acknowledging Expeditors International’s solid financial position and its capability to prepare for future upturns. This was evident in the fourth quarter when additional headcount did not impede earnings growth. However, the Hold rating was reiterated as the current valuation of Expeditors International is considered adequate, given the fluctuating capacity in the market.
In other recent news, Expeditors International of Washington, Inc. has reported notable developments that are capturing investor attention. The company exceeded expectations in its fourth-quarter earnings, with an earnings per share (EPS) of $1.68, surpassing both consensus and individual estimates from firms like Stifel, which had projected $1.37. Analysts from TD Cowen and Stifel have adjusted their price targets for Expeditors International, raising them to $117 and $118.12, respectively, though they maintain cautious ratings. TD Cowen has reiterated a Sell rating, while Stifel holds a Hold rating, reflecting differing perspectives on the company’s future amidst global uncertainties. Expeditors International’s recent 8-K filing highlighted the impact of tariffs and geopolitical tensions, which have historically benefited the company by increasing the demand for its specialized logistics services. The company also reported robust productivity gains in the third quarter, facilitated by technological advancements and process optimization. Looking ahead, Expeditors anticipates challenges such as air supply tightness and potential regulatory changes in de minimis laws, which could influence its operations. These factors, along with ongoing market dynamics, continue to shape the outlook for Expeditors International and the logistics sector at large.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.