FedEx

FedEx Outlook Likely Not As Bad As Express Unit Suggests

FedEx’s outlook is likely better than the dour results from the shipping giant’s Express unit would suggest, Citi analysts say in a research note. “We think it is likely as simple as cyclical trough margins persisting as volume hits cycle lows,” they say. “When the cycle turns (which may be happening now), we think leverage will return.” They add that management’s inability to bolster margins in the segment likely hurts credibility. “We were disappointed in how much management sounded like the ‘old’ FedEx,” they say. FedEx CEO Raj Subramaniam took over last year, succeeding founder and longtime CEO Fred Smith.

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FedEx 2Q Results Show Early Success of Cost-Cutting Efforts

FedEx’s F2Q bottom-line miss was primarily driven by the impact of severe macro headwinds in its Express unit’s volumes and the inability to move the cost needle as quickly in that segment, say analysts at Evercore ISI in a research note. They say that weak Express margins aren’t indicative of hiccups in FedEx’s cost-saving initiatives, which showed up more clearly in the Ground and Freight segments. The delivery giant did cut its revenue guidance for the second time this year, but its EPS guide remained intact, proving the initial successes of its cost initiatives, say the analysts.

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FedEx Q2 Earnings Preview

Shipping and logistics company FedEx Corp (NYSE:FDX) is set to report second-quarter financial results after market close Tuesday, Dec. 19. Here’s a look at the earnings estimates, what analysts are saying and key items for investors to watch. Earnings Estimates: FedEx is expected to report second-quarter revenue of $22.405 billion, according to data from Benzinga Pro. The total would come in shy of the $22.814 billion in revenue reported in the second quarter of the previous year. The company has missed Street estimates for revenue in six straight quarters. Analysts estimate FedEx will report second-quarter earnings per share of $4.20, compared to $3.18 in the year-over-year period. The company has beaten earnings per share estimates in five straight quarters.

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FedEx Seen Holding On to Business Picked Up From UPS, Yellow

FedEx expects to hold on to a majority of the 400,000 additional packages it now ships per daythat were added during labor negotiations between UPS and the Teamsters, BofA analysts say. “This is in contrast to UPS’ commentary that it expects to win back a majority of its business, and is willing to pay customer penalties,” BofA says. The analysts’ note follows a meeting with the shipping company’s new CFO John Dietrich earlier this week. FedEx also thinks it will keep the approximately 5,000 shipments per day in additional less-than-truckload freight it picked up following the bankruptcy of the trucking company Yellow. BofA maintains the stock as a buy along with its price target of $330.

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FedEx (NYSE:FDX) Off to ‘Good Start’ in Fiscal 2024 Despite Mixed First Quarter, Morgan Stanley Says

FedEx’s (NYSE:FDX) latest quarterly results and outlook delivered mixed messages, but overall the parcel delivery giant has had a “good start” to its new fiscal year, Morgan Stanley said Thursday. Late Wednesday, the company posted fiscal first-quarter earnings that topped Wall Street’s estimates, while revenue fell more than expected. Morgan Stanley raised its price target on the FedEx stock to $205 from $200 and maintained its equal-weight rating, saying it’s one of the “best performing” stocks in the firm’s coverage. The company’s results had something for both the bulls and the bears, the firm said. “Bulls will like the magnitude of the beat despite an in-line revenue, which shows good execution on the DRIVE cost story,” the brokerage wrote. “Bears will point out that despite unusual gains from competitors in the quarter, revenue was unable to beat, Express continues to languish and Freight did not deliver the kind of uplift

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FedEx (NYSE:FDX) Cost-Saving Program Seen Driving Quarterly Earnings Higher, BofA Says

FedEx’s (NYSE:FDX) fiscal first-quarter earnings are likely to receive a boost from the parcel delivery group’s cost-saving initiative, BofA Securities said Thursday. The company is scheduled to report quarterly results Wednesday, with BofA raising its per-share earnings outlook to $3.58 from the previously expected $3.47. The brokerage’s projection is still below Wall Street’s view for $3.70 amid the “soft economic backdrop,” BofA analysts Ken Hoexter, Adam Roszkowski and Nathan Ho said in a note. The analysts said FedEx consolidated its Youngstown and Indianapolis facilities and moved to close 29 less-than-truckload terminals in the first quarter under its DRIVE transformation program. The company is targeting $1.8 billion in permanent cost reductions in fiscal 2024 and $4 billion by 2025. The brokerage increased its price objective on the FedEx stock to $309 from $290 while reiterating its buy rating. BofA expects FedEx Express revenue to fall 10% year over year to about

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