FedEx Fiscal Q3, Q4 Estimates Cut on ‘Weaker’ Express Segment Margin, UBS Says

FedEx (FDX) fiscal Q3 and Q4 earnings per share estimates have been lowered on the “weaker” Express segment margin, UBS Securities said in a note Friday.

UBS reduced its fiscal Q3 earnings forecast for FedEx to $3.20 from $3.32 because of “a challenging weather backdrop in January with unusually high snowfall in key areas of their Express network and nine consecutive days of national service disruption.”

The firm sees Express breaking even in the quarter, compared with prior expectation of a 0.5% margin.

For fiscal Q4, the firm lowered EPS estimate to $5.47 from $5.76 to reflect “a more cautious view on Express margin.”

UBS maintained its buy rating with $323 price target on FedEx stock.

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