Wolfe Research cuts Expeditors stock price target on ocean rate pressure
#Expeditors International #Wolfe Research #Ocean freight rates #Stock price target #Q4 earnings #Analyst rating #Share buyback
📌 Key Takeaways
- Wolfe Research cuts Expeditors price target to $134 citing ocean rate pressure
- Expeditors reports Q4 EPS of $1.49 beating estimates despite revenue challenges
- Ocean freight volumes down 6% YoY with pricing falling 28% YoY
- Company announces $3 billion share buyback program while repurchasing only $47M in Q4
📖 Full Retelling
Wolfe Research lowered its price target on Expeditors International of Washington shares (NYSE:EXPD) to $134 from $142 while maintaining an Underperform rating on February 25, 2026, citing significant pressure on ocean rates that have impacted the company's financial performance. The global logistics firm reported fourth-quarter earnings per share of $1.49, slightly above the consensus estimate of $1.47, yet faced substantial headwinds from declining ocean freight pricing and volumes. Ocean net revenue declined 11% quarter-over-quarter and 20% year-over-year amid falling rates, while airfreight net revenue also turned negative year-over-year, creating a challenging operating environment for the company. Despite these challenges, Expeditors announced a new $3 billion share buyback authorization representing 16% of shares, though it repurchased just $47 million of shares in the fourth quarter, the lowest amount in 15 quarters. The company's stock currently trades at a P/E ratio of 22.43, and according to InvestingPro analysis, appears overvalued relative to its Fair Value, with gross profit margin of just 13.68% over the last twelve months. Wolfe Research raised its 2026 earnings estimate by 1% but lowered its 2027 estimate by 6%, now forecasting flat earnings over the next two years while expecting continued pressure on ocean results with weaker rates and potential peak in customs strength in 2026.
🏷️ Themes
Financial Performance, Analyst Ratings, Ocean Freight Industry
📚 Related People & Topics
Expeditors International
Logistics company in Washington, US
Expeditors International of Washington, Inc. (commonly referred to as Expeditors) is an American Fortune 500 service-based logistics company with headquarters in Bellevue, Washington. Expeditors generates highly optimized and customized supply chain solutions for clients with unified technology syst...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices rebound on tariff jitters; silver, platinum and copper rally Nvidia, Salesforce earnings loom large - what’s moving markets AMD stock surges 14% on Meta AI partnership deal U.S. stock futures drift higher; Nvidia earnings to drive direction (South Africa Philippines Nigeria) Wolfe Research cuts Expeditors stock price target on ocean rate pressure By Investing.com Analyst Ratings Published 02/25/2026, 06:27 AM Wolfe Research cuts Expeditors stock price target on ocean rate pressure 0 EXPD -7.22% Investing.com - Wolfe Research lowered its price target on Expeditors International of Washington shares (NYSE:EXPD) to $134 from $142 while maintaining an Underperform rating on the stock. The company reported fourth-quarter earnings per share of $1.49, slightly above the consensus estimate of $1.47. The stock currently trades at a P/E ratio of 22.43, and according to InvestingPro analysis, appears overvalued relative to its Fair Value. Ocean net revenue declined 11% quarter-over-quarter and 20% year-over-year amid falling rates, while airfreight net revenue also turned negative year-over-year. Volume trends were mixed in the quarter, with airfreight volumes rising 6% year-over-year while ocean volumes fell 6% year-over-year. Pricing for air freight declined 2% year-over-year and ocean pricing fell 28% year-over-year, both deteriorating relative to the third quarter. Net operating margins declined 500 basis points year-over-year to 27%, the lowest level in eight quarters, as headcount increased 8% year-over-year. This pressure is reflected in the company’s gross profit margin of just 13.68% over the last twelve months. The company announced a new $3 billion share buyback authorization representing 16% of shares, though it repurchased just $47 million of shares in the fourth quarter, the lowest amount in 15 quarters. An InvestingPro tip notes that management has been aggressively buying back shares, one of ...
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