Expeditors International of Washington, Inc. (NYSE:EXPD) just released its latest third-quarter results and things are looking bullish. Expeditors International of Washington delivered a significant beat with revenue hitting US$4.1b and statutory EPS reaching US$2.65, both beating estimates by more than 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Expeditors International of Washington's 16 analysts are now forecasting revenues of US$14.2b in 2027. This would be a reasonable 7.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.6% to US$8.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.3b and earnings per share (EPS) of US$8.20 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for Expeditors International of Washington
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.8% to US$194per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Expeditors International of Washington at US$245 per share, while the most bearish prices it at US$100.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. One thing stands out from these estimates, which is that Expeditors International of Washington is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.5% annualised growth until the end of 2027. If achieved, this would be a much better result than the 10% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.4% annually. So it looks like Expeditors International of Washington is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Expeditors International of Washington following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Expeditors International of Washington going out to 2028, and you can see them free on our platform here.
We also provide an overview of the Expeditors International of Washington Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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