FedEx

FedEx CEO Raj Subramaniam said the carrier hasn’t seen higher demand for air freight from global shippers looking to divert goods from ocean shipping due to Houthi attacks on commercial vessels at the Red Sea. The ships can still travel via an alternative and longer route via the Cape of Good Hope, he said, adding that ocean shipping rates have risen. There has been no change to air freight rates due to the Red Sea disruptions. Subramaniam added that 90% of global shipping freight travels by ocean and 10% by air, and just a small diversion will make a big difference to air freight.

By Jacob Sonenshine FedEx stock has been hit hard in recent weeks, but the worst of the company’s problems are likely over. It’s time to buy. Last year ended on a low note for FedEx, whose stock has dropped 11%, to $250, since Dec. 19. On that date, the company said its fiscal 2024 sales would fall at a low single-digit rate, down from its previous guidance for flat growth. Management blamed the miss on a decline in the number of shipments, which was partially offset by rising prices. It wasn’t all bad, though. While sales guidance came down, management maintained its profit outlook, calling for per share earnings to come in at $17.75 at the midpoint of its range for the year. FedEx is overhauling its cost structure for calendar year 2024, and analysts expect an operating margin of 7.5%, up from this year’s 6.5%. “[FedEx deserves] the benefit

By Jacob Sonenshine FedEx stock has been hit hard in recent weeks, but the worst of the company’s problems are likely over. It’s time to buy. Last year ended on a low note for FedEx, whose stock has dropped 11%, to $250, since Dec. 19. On that date, the company said its fiscal 2024 sales would fall at a low single-digit rate, down from its previous guidance for flat growth. Management blamed the miss on a decline in the number of shipments, which was partially offset by rising prices. It wasn’t all bad, though. While sales guidance came down, management maintained its profit outlook, calling for per share earnings to come in at $17.75 at the midpoint of its range for the year. FedEx is overhauling its cost structure for calendar year 2024, and analysts expect an operating margin of 7.5%, up from this year’s 6.5%. “[FedEx deserves] the benefit

FedEx (NYSE:FDX) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/10/2024 23.67% Stifel $282 → $305 Maintains Buy 01/08/2024 25.7% Melius Research → $310 Upgrades Hold → Buy 12/20/2023 29.75% Stephens & Co. $330 → $320 Maintains Overweight 12/20/2023 11.51% Raymond James $279 → $275 Maintains Outperform 12/20/2023 25.7% Barclays $330 → $310 Maintains Overweight 12/20/2023 23.67% JP Morgan $322 → $305 Maintains Neutral 10/02/2023 27.72% Susquehanna $225 → $315 Upgrades Neutral → Positive 09/29/2023 33.81% HSBC → $330 Initiates Coverage On → Buy 09/22/2023 11.51% Loop Capital $255 → $275 Maintains Hold 09/22/2023 19.61% Deutsche Bank $255 → $295 Maintains Buy 09/22/2023 17.59% BMO Capital $280 → $290 Maintains Market Perform 09/21/2023 33.81% B of A Securities $309 → $330 Maintains Buy 09/21/2023 30.97% UBS $312 → $323 Maintains Buy 09/21/2023 7.45% Jefferies $245 → $265 Maintains Hold 09/21/2023 17.59% Stephens

FedEx (NYSE:FDX) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/08/2024 25.1% Melius Research → $310 Upgrades Hold → Buy 12/20/2023 29.14% Stephens & Co. $330 → $320 Maintains Overweight 12/20/2023 10.98% Raymond James $279 → $275 Maintains Outperform 12/20/2023 25.1% Barclays $330 → $310 Maintains Overweight 12/20/2023 23.08% JP Morgan $322 → $305 Maintains Neutral 10/02/2023 27.12% Susquehanna $225 → $315 Upgrades Neutral → Positive 09/29/2023 33.17% HSBC → $330 Initiates Coverage On → Buy 09/22/2023 10.98% Loop Capital $255 → $275 Maintains Hold 09/22/2023 19.05% Deutsche Bank $255 → $295 Maintains Buy 09/22/2023 17.03% BMO Capital $280 → $290 Maintains Market Perform 09/21/2023 33.17% B of A Securities $309 → $330 Maintains Buy 09/21/2023 30.35% UBS $312 → $323 Maintains Buy 09/21/2023 6.94% Jefferies $245 → $265 Maintains Hold 09/21/2023 17.03% Stephens & Co. → $290 Reiterates Overweight → Overweight

Melius Research analyst Conor Cunningham upgrades FedEx (NYSE:FDX) from Hold to Buy and announces $310 price target.

FedEx’s (FDX) mixed guidance trends signal a “lack of earnings visibility” while its fiscal Q3 commentary points to a “challenging” Q4, Morgan Stanley said in a Wednesday note. The company reported fiscal Q2 non-GAAP diluted earnings Tuesday of $3.99 per share, up from $3.18 a year earlier, while revenue declined to $22.2 billion from $22.8 billion. For the full fiscal year, FedEx expects revenue to decline by a low-single-digit percentage, compared with its prior forecast of flat revenue growth. Morgan Stanley said fiscal Q2 earnings missed Street estimates, as expected, and that the quarter’s results demonstrate the challenge that the revenue versus cost dynamic presents. The investment firm said pressures on the company’s revenue outweigh the gains from its DRIVE cost-cutting program. “We believe FDX is an idiosyncratic revenue story rather than an idiosyncratic cost story like the market believes,” said Morgan Stanley. According to the firm, savings from the

FedEx’s (FDX) express business is expected to see continued headwinds in the second half of fiscal 2024, though freight and ground should support the company’s earnings, UBS Securities said Wednesday. Late Tuesday, the parcel delivery giant projected a drop in full-year sales after its fiscal second-quarter results missed Wall Street estimates amid demand headwinds. The express segment’s operating income fell due to lower revenue, which was driven by volume declines, lower fuel surcharges and reduced demand surcharges, according to the company. UBS said the revenue and margin performance of the express segment was worse than the firm’s expectations. The brokerage lowered its full-year per-share earnings estimate for FedEx to $17.60 from $18.50 amid “weaker” express margin performance, analysts Thomas Wadewitz, Michael DiMattia and Michael Triano said in a note. FedEx shares were down nearly 11% in Wednesday late-afternoon trade. The demand backdrop continues to be “difficult,” Chief Executive Raj Subramaniam

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $263, cut by $6, reflects a 12x multiple of our revised FY 25 (May) EPS estimate, about in line with FDX’s historical forward average. We cut our FY 24 (May) EPS estimate by $0.69 to $17.69 and FY 25’s by $0.50 to $21.92. FQ2 operating EPS of $3.99 vs. $3.18, missed the consensus view by $0.21. Volumes were light, a continuation of demand headwinds seen in FQ1, but worse than FDX had expected. Updated FDX guidance for FY 24 indicates a revenue outlook that is slightly worse than before. Notably, FDX sees revenues down low-single digits in FY 24 rather than flat, and may reflect some higher competitive pressure from the U.S. Postal Service, as it shifts toward ground shipments rather than

The following is a summary of the FedEx Corporation (FDX) Q2 2024 Earnings Call Transcript: Financial Performance: FedEx’s Q2 revenue saw a 3% increase at FedEx Ground, but suffered a decline of 4% at FedEx Freight and 6% at FedEx Express due to lower shipments and contraction in the market. Despite reductions in revenue, FedEx saw operating margin growth, reporting a 57% rise in adjusted operating income for the Ground Segment, a 11% rise for the Freight segment, but a significant 49% decline for Express. Despite expected declines in revenue, FedEx maintains its adjusted EPS outlook within $17 to $18.50. FedEx ended the quarter with a solid liquidity position of $6.7 billion and has completed another $500 million share repurchase transaction. Capital investments for the quarter were $1.3 billion, leading to a year-to-date CapEx of $2.6 billion. Business Progress: FedEx managed to grow its parcel volume in the US, Europe,

FedEx (NYSE:FDX) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/20/2023 21.27% JP Morgan $322 → $305 Maintains Neutral 10/02/2023 25.25% Susquehanna $225 → $315 Upgrades Neutral → Positive 09/29/2023 31.21% HSBC → $330 Initiates Coverage On → Buy 09/22/2023 9.34% Loop Capital $255 → $275 Maintains Hold 09/22/2023 17.3% Deutsche Bank $255 → $295 Maintains Buy 09/22/2023 15.31% BMO Capital $280 → $290 Maintains Market Perform 09/21/2023 31.21% B of A Securities $309 → $330 Maintains Buy 09/21/2023 28.43% UBS $312 → $323 Maintains Buy 09/21/2023 5.37% Jefferies $245 → $265 Maintains Hold 09/21/2023 15.31% Stephens & Co. → $290 Reiterates Overweight → Overweight 09/21/2023 15.71% Evercore ISI Group $276 → $291 Maintains Outperform 09/21/2023 -18.49% Morgan Stanley $200 → $205 Maintains Equal-Weight 09/21/2023 11.33% Wells Fargo $270 → $280 Maintains Equal-Weight 09/21/2023 10.93% Raymond James $270 → $279 Maintains Outperform

JPMorgan analyst Brian Ossenbeck maintains FedEx (NYSE:FDX) with a Neutral and lowers the price target from $322 to $305.