Analysts' Revenue Estimates For Expeditors International of Washington, Inc. (NASDAQ:EXPD) Are Surging Higher

Expeditors International of Washington, Inc. (NASDAQ:EXPD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Expeditors International of Washington will make substantially more sales than they'd previously expected.

Following the latest upgrade, Expeditors International of Washington's eleven analysts currently expect revenues in 2022 to be US$17b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$15b in 2022. It looks like there's been a clear increase in optimism around Expeditors International of Washington, given the decent improvement in revenue forecasts.

View our latest analysis for Expeditors International of Washington

Notably, the analysts have cut their price target 8.8% to US$109, suggesting concerns around Expeditors International of Washington's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Expeditors International of Washington, with the most bullish analyst valuing it at US$125 and the most bearish at US$94.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Expeditors International of Washington is an easy business to forecast or the underlying assumptions are obvious.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Expeditors International of Washington's revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2022 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Expeditors International of Washington is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Expeditors International of Washington.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential flags with Expeditors International of Washington, including recent substantial insider selling. You can learn more, and discover the 2 other flags we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.