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Fly News Breaks for July 10, 2019
Jul 10, 2019 | 06:41 EDT
Goldman Sachs analyst Jordan Alliger started Expeditors with a Selll rating and a $70 price target. The analyst states that while he likes the company as a "strong operator with a high return on capital", he is concerned with its "difficult" near term fundamentals. These include weak Air Freight volumes, oceanfreight carrier consolidation, exposure to trade risk, and high relative sector valuation at 21.6-times his expected next 12-month earnings - the highest multiple in his coverage universe, the analyst writes in his research note.
News For EXPD From the Last 2 Days
Feb 18, 2020 | 08:44 EST
Reports Q4 revenue $2.04B, consensus $2.14B. "Our final financial results for the fourth quarter were within the range of earnings guidance we issued last month," said Jeffrey Musser, President and CEO. "As noted in that guidance, we do not believe this comparatively soft fourth quarter is the result of a business performance issue, but is instead more closely tied to the business environment in which we are operating. Average sell rates declined faster than our average buy rates, and both air and ocean volumes declined as slowing trade to and from China impacted overall freight movement around the globe. In the year-ago fourth quarter, by comparison, we believe our volumes benefitted as shippers moved product ahead of scheduled tariff increases." Musser continued: "Our people and operations in China are a very important part of our global network. China imports and exports are interrelated to all of our other geographic regions and, on a stand-alone basis, represented 26% of our consolidated revenue and 27% of operating income in 2019. While we would normally expect softness in the first part of Q1 because of the Chinese Lunar New Year Holidays, this year has been much more pronounced due to the extended closures of factories in China in support of containing the Novel Coronavirus (COVID-19). There remains a great deal of uncertainty as to when factories will return to full production, and those delays will have a significant impact on freight volumes moved in Q1. In addition to traditional supply chain movements, we also believe this may have a further impact to global supply chains through potential shortages of raw materials, parts and supplies."