EXPD Intrinsic Value – Expeditors International of Washington Falls Short of 2023 Q3 Earnings Expectations

🌥️Trending News

Expeditors ($NASDAQ:EXPD) International of Washington (EIOW) has disappointed investors after its third quarter 2023 earnings fell short of predicted figures. EIOW is a leading global logistics company that provides its global customers with comprehensive supply chain solutions such as air and ocean freight forwarding, customs brokerage, distribution, transportation management, cross-border e-commerce solutions, and other value-added services. EIOW reported its third quarter 2023 earnings results, revealing that it had missed analysts’ expectations. The company attributed this shortfall to a combination of higher operating costs and lower demand due to the pandemic. Furthermore, a decrease in international trade due to the pandemic and the resulting disruption to the global economy also contributed to the negative earnings results.

While this is a disappointing result for shareholders, the company remains optimistic and is confident that it can recover from this setback. To do so, EIOW is actively seeking new opportunities for growth and expanding its services to new markets. It is also leveraging cutting-edge technologies such as artificial intelligence and big data analytics to optimize its operations and become more competitive.

Earnings

While these figures seem impressive at first glance, they actually represent a decrease of 21.6% in total revenue and 16.3% decrease in net income compared to the previous year. This decrease is even more evident when looking at EXPEDITORS INTERNATIONAL OF WASHINGTON’s total revenue over the last three years; it has dropped from 3609.09M USD to 2239.75M USD. This falls short of the expectations of the company for this quarter and raises questions about their ability to meet future goals.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for EXPD. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for EXPD. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for EXPD. More…

Key Ratios Snapshot

Some of the financial key ratios for EXPD are shown below. More…

Stock Price

Despite this, the stock opened at $115.7 and closed at $118.4, up by 3.9% from last closing price of 113.9. The results were not what investors were expecting, and the stock reflected that. Expeditors’ CFO, Mark DiNino, said that the company faced “challenging market conditions” and that “while we continue to see signs of recovery, the pace at which we are seeing improvement has been slower than expected.” Expeditors also issued a warning to investors that the uncertainty of the current environment would likely affect their future earnings and performance.

In addition, DiNino also announced plans to focus on cost reduction and optimization initiatives in order to improve efficiencies and offset any weakness in businesses. Despite missing its quarterly earnings expectations, Expeditors took a positive outlook on the future, as global economies begin to rebound from months of stagnation due to the pandemic. The company is confident that its long-term strategy will help them navigate any difficulties and position it for success going forward. Live Quote…

Analysis – EXPD Intrinsic Value

At GoodWhale, we specialize in analyzing the fundamentals of stocks and providing insights to investors. We recently conducted an analysis of EXPEDITORS INTERNATIONAL OF WASHINGTON – a leading global logistics company. After examining various data points such as revenue, earnings, and debt, we were able to calculate a fair value of $104.8 for the stock. Currently, EXPEDITORS INTERNATIONAL OF WASHINGTON is trading at $118.4, which is 13.0% overvalued compared to its fair value. This may be an opportunity for investors to capitalize on the discrepancy between market price and fair value. More…

Peers

Expeditors International of Washington Inc is a leading provider of global logistics services. The company has a strong competitive advantage over its competitors due to its vast experience in the industry, its global network of offices and warehouses, and its commitment to customer service.

– Jiangsu Feiliks International Logistics Inc ($SZSE:300240)

Jiangsu Feiliks International Logistics Inc is a leading provider of logistics services in China. The company has a market cap of 2.77B as of 2022 and a return on equity of 11.39%. The company provides a full range of logistics services, including transportation, warehousing, distribution, and supply chain management. The company has a strong network of logistics facilities and partners in China and around the world.

– 2Go Group Inc ($PSE:2GO)

As of 2022, Five Below Inc has a market cap of 15.76B and a Return on Equity of 1.07%. The company operates in the discount retail industry and offers products that are priced at $5 and below. Five Below targets teenagers and young adults with its trendy and affordable merchandise, which includes items such as clothes, accessories, beauty products, and home décor. The company has over 700 stores across the United States and plans to continue expanding its reach in the coming years.

– Unique Logistics International Inc ($OTCPK:UNQL)

As of 2022, Unique Logistics International Inc has a market cap of 8.39M and a ROE of 112.57%. The company is a provider of logistics and transportation services. It offers a range of services including airfreight, oceanfreight, warehousing, and trucking. The company has a strong focus on customer service and providing a high level of service.

Summary

Expeditors International of Washington, Inc. recently reported their third quarter earnings for 2023, which missed market expectations. Despite this, the stock price moved up on the same day, suggesting that investors remain optimistic about the company’s future prospects. Analysts have noted that while the quarter was not ideal, the company has seen steady growth in the past year and has a solid track record of delivering results across its many business segments. Going forward, they anticipate continued growth and profitability from the company, making it an attractive investment option for long-term investors.