Jason Seidl, an analyst from TD Cowen, reiterated the Hold rating on Expeditors International (EXPD – Research Report). The associated price target is $100.00.
Jason Seidl’s Hold rating on Expeditors International (EXPD) is based on a mix of factors. Firstly, he points to the ongoing difficulties the company is facing in both the ocean and air markets, with a significant “unwinding” occurring that may not see a significant turnaround until 2025. This is largely due to a substantial imbalance between supply and demand, which has resulted in declining container rates. This situation is further exacerbated by the fact that Expeditors International has had to reduce its workforce in response to these challenging conditions, with a focus on cost control.
Secondly, Seidl notes that EXPD’s third-quarter earnings per share (EPS) fell short of the estimated $1.27, coming in at $1.16. The company’s revenues also saw a significant decrease of around 50% year-over-year, slightly missing the projected figure of $2.25 billion. This performance was adversely affected by $14 million in indirect tax and contingency expenses. Furthermore, the operating margin was lower than expected. Looking ahead, Seidl anticipates further downsizing in the near term due to ongoing market uncertainty, which he believes will support gross margins in the short term. However, he expects that this will be offset by weakness in the operating margin. Thus, these market conditions and financial results have led Seidl to maintain a Hold rating for Expeditors International.
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Expeditors International (EXPD) Company Description:
Expeditors International of Washington, Inc. engages in the provision of global logistics services. The firm offers airfreight, ocean freight and ocean and customs brokerage and other services. It also provides customer solutions such as order management, time-definite transportation, warehousing and distribution, temperature-controlled transit, cargo insurance and customized logistics solutions. The company was founded by John M. Kaiser, Peter Rose, Wang Li Kou, Kevin Walsh, Hank Wong, George Ho, Robert Chiarito, and Glenn Alger in May 1979 and is headquartered in Seattle, WA.
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