Results: Expeditors International of Washington, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Expeditors International of Washington, Inc. (NYSE:EXPD) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Expeditors International of Washington beat earnings, with revenues hitting US$2.9b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the 14 analysts covering Expeditors International of Washington provided consensus estimates of US$10.9b revenue in 2026, which would reflect a discernible 2.3% decline over the past 12 months. Statutory earnings per share are expected to decrease 5.7% to US$5.95 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.7b and earnings per share (EPS) of US$5.57 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Expeditors International of Washington

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.5% to US$125. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Expeditors International of Washington at US$142 per share, while the most bearish prices it at US$90.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would also point out that the forecast 1.8% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 4.9% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.4% annually. So while a broad number of companies are forecast to grow, unfortunately Expeditors International of Washington is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Expeditors International of Washington's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

We don't want to rain on the parade too much, but we did also find 1 warning sign for Expeditors International of Washington that you need to be mindful of.

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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.