Growth & Income: Expeditors International (EXPD)

Expeditors International (EXPD): Boring consistency is what they do best.

Business

Expeditors International provides logistics services in the US and internationally. The company’s services include consolidation or forwarding air and ocean freight, distribution management, and vendor consolidating.

Growth and Income

The company is expected to grow its earnings per share 33% in 2010, 15% in 2011, and 17% over the long term. Its trailing 12-month return on equity is 18%. The stock also offers investors a dividend yield of 1.0%.

This Zacks #1 Rank stock trades at 27x 2010 consensus EPS estimates and 24x 2011 consensus EPS estimates.

Recent News

On August 2, Expeditors announced second-quarter results. The company had total revenue of $1.5 billion, up 69% year-over-year. The company had EPS of $0.42, an increase of 59% compared to the second quarter of last year. EXPD also beat the Zacks Consensus by 3 cents, or 7.7%.

In the last three quarters, Expeditors has beaten the Zacks Consensus Estimate by 7.7%

Chairman and CEO Peter Rose said, “Our philosophy these last several years has been to try to not do anything stupid. We simply did what we’ve always done; focusing on improving customer service; taking market share by adding new customers; taking care of our people by not doing lay-offs; and making ourselves more productive through continued process improvement efforts. Boring consistency is what we do best.”

Estimates

In the last month, the Zacks Consensus Estimate for 2010 has increased 21 cents, or 16.2%, to $1.50. The Zacks Consensus Estimate for 2011 has climbed 18 cents, or 11.2%, to $1.72.

The Chart

EXPD shares are up about 25% in the last twelve months. The stock experienced a sharp decline of 18% from May through the beginning of July. However, the stock has rebounded about 21% since its lows of July 2. The stock even hit a new 52-week on its strong second-quarter result. It has given back a little in the last week, but the chart looks solid.

EXPEDITORS INTL (EXPD): Free Stock Analysis Report

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About Rob Plaza 22 Articles

Affiliation: Zacks Investment Research

Visit: Zacks Investment Research

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