Expeditors International of Washington (EXPD) is benefiting from stronger ocean rates and continued growth in airfreight activity, prompting the brokerage to raise its earnings estimates for Q3 and Q4 of 2026 and 2027, UBS Securities said in a Friday note.

UBS raised its Q3 earnings per share estimate to $2.18 from $2.11, above consensus of $2.14, and its Q4 estimate to $1.95 from $1.90. The brokerage expects Q3 ocean net revenue to increase 8.6% year over year, driven by 1.5% growth in net revenue per ton and 7% volume growth, while airfreight net revenue is expected to rise 37%.

UBS raised its 2027 EPS estimate to $8.80 from $8.40, citing stronger air tonnage and ocean net revenue growth, with air tons per day expected to rise 5% and ocean net revenue 4%. Operating margin is estimated at 33.1%, partly supported by headcount reductions and AI-driven productivity.

The 2026 EPS estimate was raised to $7.87 from $7.74, with Q4 ocean net revenue expected to grow 17.5% year over year. Q3 results and Expeditors' Nov. 18 analyst meeting could provide further visibility into 2027 earnings growth, the report added.

UBS maintained its buy rating on the stock and raised its price target to $220 from $210.

Expeditors International of Washington shares were up over 2% in Friday trading.

Price: 192.50, Change: +4.76, Percent Change: +2.54