FedEx (NYSE:FDX) Issues Quarterly Earnings Results, Beats Expectations By $1.64 EPS

FedEx (NYSE:FDX) released its earnings results on Wednesday. The shipping service provider reported $4.98 earnings per share for the quarter, beating analysts’ consensus estimates of $3.34 by $1.64, FiscalAI reports. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The business had revenue of $22.93 billion during the quarter, compared to the consensus estimate of $22.73 billion.

FedEx Price Performance

NYSE:FDX traded down $2.10 during trading hours on Wednesday, hitting $305.00. 1,857,205 shares of the company’s stock traded hands, compared to its average volume of 1,988,105. FedEx has a 52 week low of $198.00 and a 52 week high of $345.36. The business’s fifty day simple moving average is $305.43 and its two-hundred day simple moving average is $337.18. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74. The firm has a market cap of $72.19 billion, a P/E ratio of 16.48, a P/E/G ratio of 1.53 and a beta of 1.28.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Monday, September 14th were issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, September 14th. FedEx’s dividend payout ratio is presently 26.36%.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx reported adjusted earnings of $4.98 per share, well above the $3.34 analyst consensus, while revenue reached approximately $22.93 billion versus expectations of $22.73 billion. FedEx beats expectations, raises outlook
• Positive Sentiment: Revenue increased about 11.9% year over year, supported by stronger shipping rates and volumes. Operating profit also rose roughly 9.8% to $1.1 billion, indicating continued improvement in operating performance. FedEx forecasts annual profit above estimates
• Positive Sentiment: Management raised its full-year outlook and now expects calendar-year revenue growth of approximately 12%, while forecasting annual profit above current estimates. Cash from operations also climbed to $3.8 billion, leaving FedEx with $8.0 billion in cash and equivalents. FedEx lifts outlook
• Neutral Sentiment: FedEx named Jamere Jackson as its next chief financial officer, effective November 30. His experience could support tighter cost controls and capital-allocation decisions following the FedEx Freight separation.
• Negative Sentiment: The positive adjusted results were overshadowed by concerns about the outlook and earnings quality. A separate financial-data report showed GAAP net income attributable to common shareholders falling 68.5% year over year to $290 million, with diluted GAAP EPS down 68.9% to $1.21. FedEx double beat not enough for investors
• Negative Sentiment: Investors appear to have expected an even stronger forecast after the earnings beat. Earlier concerns about wage inflation, pilot-contract expenses and stranded costs remain potential risks to margins, helping explain the market’s negative reaction despite the raised guidance.

Wall Street Analyst Weigh In

FDX has been the subject of several research reports. BNP Paribas Exane raised their target price on FedEx from $269.80 to $300.00 and gave the company a “neutral” rating in a research note on Wednesday, September 30th. Sanford C. Bernstein set a $377.00 price target on FedEx in a research note on Monday. Truist Financial cut their price target on FedEx from $365.00 to $350.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Raymond James Financial reissued an “outperform” rating on shares of FedEx in a research note on Thursday, October 15th. Finally, JPMorgan Chase & Co. reduced their price objective on FedEx from $400.00 to $399.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $362.60.

About FedEx

FedEx Corporation (NYSE: FDX) is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company’s services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.