The Gory Details on Expeditors International of Washington's Double Fumble

Expeditors International of Washington (Nasdaq: EXPD  ) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Expeditors International of Washington missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Expeditors International of Washington logged revenue of $1.53 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $1.59 billion on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $1.61 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.42. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.42 for Q3 were 16% lower than the prior-year quarter's $0.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.5%, 80 basis points worse than the prior-year quarter. Operating margin was 9.5%, 70 basis points worse than the prior-year quarter. Net margin was 5.8%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $5.96 billion. The average EPS estimate is $1.63.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 517 members out of 540 rating the stock outperform, and 23 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Expeditors International of Washington a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expeditors International of Washington is hold, with an average price target of $41.08.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Expeditors International of Washington. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On November 09, 2012, at 2:58 AM, FF2point0 wrote:

    O prolific Fool... Love your charts, man, but why do you say always that company X misses analysts' estimates, when it's the analysts who are always wrong?

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8/20/2014 4:00 PM
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