Expeditors Intl Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Expeditors Intl (NASDAQ:EXPD) will unveil its latest earnings on Tuesday, November 6, 2012. Expeditors International of Washington offers global logistics services through an international network supporting the movement and strategic positioning of goods.

Expeditors Intl Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 44 cents per share, a decline of 12% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 44 cents during the last month. Analysts are projecting profit to rise by 8.4% versus last year to $1.64.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported profit of 39 cents per share versus a mean estimate of net income of 43 cents per share.

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A Look Back: In the second quarter, profit fell 11.6% to $84 million (39 cents a share) from $95 million (44 cents a share) the year earlier, missing analyst expectations. Revenue fell 4.8% to $1.5 billion from $1.58 billion.

Stock Price Performance: From October 3, 2012 to October 31, 2012, the stock price rose $1.45 (4.1%), from $35.16 to $36.61. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 14, 2012, when shares rose for eight straight days, increasing 8.1% (+$2.93) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 3.8% (-$1.48) over that span.

Analyst Ratings: There are mostly holds on the stock with 12 of 17 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 3.7% in the third quarter of the last fiscal year, 5.1% in fourth quarter of the last fiscal year and 3.4% in the first quarter and then fell again in the second quarter.

An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 3.8% in the fourth quarter of the last fiscal year, by 15.9% in the first quarter and again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.72 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.91 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.6% to $882.9 million while assets decreased 0.2% to $2.41 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 0.6% in revenue from the year-earlier quarter to $1.6 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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