FedEx

FedEx cut its outlook after posting lower profit and revenue in its fiscal first quarter, dragged down by a shift in the mix of it business that saw reduced demand for priority services, increased demand for deferred services and constrained yield growth. The Memphis, Tenn., package-shipping company on Thursday posted a profit of $790 million, or $3.21 a share, for its three months ended Aug. 31, compared with $1.08 billion, or $4.23 a share, in last year’s quarter. Adjusted per-share earnings were $3.60, missing the $4.75 that analysts polled by FactSet forecast. Revenue fell 0.5% to $21.6 billion. Analysts were looking for $21.87 billion, according to FactSet. Chief Executive Raj Subramaniam said the company remains focused on transforming its network, improving efficiencies and lowering costs, adding that he remains confident in the value-creation opportunities the company has ahead. For its fiscal 2025, FedEx now expects per-share earnings between $17.90 and […]

FedEx has placed its freight business under strategic review, the company said when it reported fiscal fourth-quarter results Tuesday FedEx Corp.’s ongoing cost-cutting efforts are delivering results, say analysts, who also welcome the package deliverer’s strategic review of its freight business. In its fiscal fourth-quarter results Tuesday, FedEx (FDX) said it expected improved demand for the coming fiscal year, sending its stock soaring 15% in premarket trading. It also said that it is conducting an assessment of FedEx Freight’s role in the company’s “value-creation plans” and that it plans to complete the review by the end of the calendar year. The company’s capital spending was $5.2 billion in fiscal 2024, down 16% from $6.2 billion in fiscal 2023. Related: FedEx rallies after big cost cuts, but one analyst wonders if the easy reductions are in the past TD Cowen raised its FedEx price target to $335 from $320 Wednesday, citing

FedEx’s (FDX) performance slightly exceeded consensus expectations in fiscal Q4, driven by less-than-truckload operations, Morgan Stanley said in an earnings review Wednesday. Where FedEx Ground and Express missed consensus, Freight services surpassed both Morgan Stanley estimates and consensus expectations, the note said. FedEx’s 2025 guidance might be slightly better, but the brokerage said, “As such, we do not believe that we received much new information today that will cause the [Wall Street] to materially gap up [fiscal 2025] earnings expectation.” The proposed spinoff of LTL operations isn’t expected to fundamentally alter the risk-reward dynamics, Morgan Stanley said. “We believe the big stock reaction today is likely a result of the announcement of the strategic review of the LTL business driving short-covering of the stock.” Morgan Stanley raised its price target for FedEx to $215 from $210 and reiterated equalweight rating.

Transportation company FedEx Corporation(NYSE:FDX) was sized up by analysts after reporting fourth-quarter results that beat estimates. The FedEx Analysts: Goldman Sachs analystJordan Alliger had a Buy rating and raised the price target from $316 to $333. Bank of America analyst Ken Hoexter had a Buy rating and raised the price target from $340 to $347. Morgan Stanley analyst Ravi Shanker had an Equal-weight rating and raised the price target from $210 to $215. Oppenheimer analyst Scott Schneeberger had a Perform rating and no price target. Stifel analyst J. Bruce Chan had a Buy rating and raised the price target from $303 to $327. Stephens analyst Daniel Imbro had an Overweight rating and $325 price target. Raymond James analyst Patrick Tyler Brownhad an Outperform rating and raised the price target from $300 to $335. Related Link: FedEx Stock Is Delivering Gains Wednesday: What’s Going On? Goldman Sachs on FedEx: The company

FedEx stock is shooting higher on Wednesday after the shipping and logistics company’s latest quarterly results. Investors are right to be happy about its progress, but what is going on there doesn’t reflect much about the broader economy, despite the company’s bellwether status. Shares of FedEx were up 15% in afternoon trading, bolstered not only by the company’s beat-and-raise fiscal fourth quarter, but also by its pledge to conduct a strategic review that could lead to a sale or spinoff of its less-than-truckload freight business. The stock’s move is a welcome change from the rest of the year, as FedEx has struggled near the break-even line. Given that underperformance, it isn’t too late for investors to buy into the shares even after Wednesday’s pop. They trade for around 12 times forward earnings, just below their five-year average of 12.5 times. Analysts’ profit forecasts are likely to climb as the Street

FedEx has placed its freight business under strategic review, the company said when it reported fiscal fourth-quarter results Tuesday FedEx Corp.’s ongoing cost-cutting efforts are delivering results, say analysts, who also welcome the package deliverer’s strategic review of its freight business. In its fiscal fourth-quarter results Tuesday, FedEx (FDX) said it expected improved demand for the coming fiscal year, sending its stock soaring 15.5% on Wednesday. The company also said that it is conducting an assessment of FedEx Freight’s role in the company’s “value-creation plans” and that it plans to complete the review by the end of the calendar year. The company’s capital spending was $5.2 billion in fiscal 2024, down 16% from $6.2 billion in fiscal 2023. Related: FedEx rallies after big cost cuts, but one analyst wonders if the easy reductions are in the past TD Cowen raised its FedEx price target to $335 from $320 on Wednesday,

FedEx’s review of its freight business could unlock significant value, says BMO Capital Markets analyst Fadi Chamoun, in a research note. FedEx on Tuesday said management and the board are conducting an assessment of FedEx Freight and potential steps to further unlock shareholder value. The division is the largest less-than-truckload business and has an operating ratio of 80% that is second only to Old Dominion Freight Line. Chamoun says that given FedEx has historically traded at 8.5x EV/EBITDA and that peers including Saia and XPO Logistics, which have higher operating ratios, trade in the low to mid-teens, they expect a significant re-rating of valuation higher should FedEx Freight trade as a standalone company or be sold. Shares jump 15% to $293.98, boosted in part by modest improvement in 4Q revenue that reversed six straight quarters of declines.

The following is a summary of the FedEx Corporation (FDX) Q4 2024 Earnings Call Transcript: Financial Performance: FedEx reported year-over-year operating profit growth and margin expansion in every quarter of FY 2024. Achieved a target of less than 6.5% capital intensity a year early, reflecting lower CapEx and higher free cash flow, resulting in nearly $4 billion returned to stockholders. Improved return on invested capital and achieved full-year earnings near the upper end of guidance, up 19% year-over-year on an adjusted basis, despite a revenue decline. Business Progress: Continued rollout of Network 2.0 and finalized the transition to ‘One FedEx’ for efficiency and reduced costs. Advanced DRIVE initiatives, achieving $1.8 billion in structural cost savings in FY 2024. Targeting $4 billion of savings in FY 2025 compared to FY 2023 baseline with plans for another $2 billion from Network 2.0. Opportunities: Potential for enhanced profitability and market presence in Europe

FedEx (FDX) reported fiscal Q4 non-GAAP earnings late Tuesday of $5.41 per diluted share, up from $4.94 a year earlier. Analysts polled by Capital IQ expected $5.37. Revenue in the quarter ended May 31 rose to $22.1 billion from $21.9 billion a year earlier. Analysts surveyed by Capital IQ expected $22.06 billion. The company expects non-GAAP adjusted fiscal 2025 earnings of $20 to $22 a diluted share. Analysts surveyed by Capital IQ expect $21.14 normalized. FedEx expects low- to mid-single-digit percentage growth in fiscal 2025 revenue. Analysts polled by Capital IQ expect $90.5 billion. Shares of the company jumped 15% in recent after-hours activity.

FedEx said revenue rose in its fiscal fourth quarter and guided for a slight recovery in revenue in the current year amid a review of its freight business. Shares jump 16% to $297 in after-hours trading. The stock has dropped 11% over the past three months. The Memphis, Tenn.-based package-shipping company on Tuesday said its profit for the three months ended May 31 fell to $1.47 billion, or $5.94 a share, from $1.54 billion, or $6.05 a share, for the same period a year earlier. Stripping out one-time items, earnings per share came in at $5.41. Analysts polled by FactSet has forecast adjusted earnings per share of $5.34. Revenue rose 0.9% to $22.1 billion, slightly ahead of analysts expectations of $22.04 billion, according to FactSet. “We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world’s most flexible, efficient, and intelligent network,” Chief

FedEx’s review of its freight business comes as the company also reviews its air network capacity to better align air network capacity with demand. FedEx is permanently closing several facilities to match capacity with demand and conducting the assessment of FedEx freight to determine the role that it plays in its overall portfolio structure. The review is expected to deliver results by the end of the year. Investors will want to see the expenses that will come with the freight assessment. In its fiscal 4Q, FedEx said that its results included a noncash imparment charge of $157 million from the decision to permanently retire 22 Boeing 757-200 aircraft and seven related engines. Shares jump 15% in after-hours trading.

FedEx (FDX) shares jumped in late trading Tuesday after the company reported a modest improvement in quarterly revenue, reversing six straight quarters of declines. The shipping giant said it still faces a challenging market for parcel deliveries but added that it benefitted from savings due to restructuring efforts that include multiple rounds of workforce reductions and facility closures. Earlier this month, FedEx said it is reducing its headcount in Europe by as many as 2,000 people. Shares rose 14.05% to $292.4 in post-market trading. — The Memphis, Tenn.-based company said revenue rose to $22.1 billion in the quarter, from $21.93 billion a year earlier, slightly exceeding the $22.04 billion expected by analysts polled by FactSet. For the fiscal year, revenue reached $87.7 billion, down from the $90.2 billion a year earlier. — The company said it logged $157 million in charges linked to a decision to retire 22 aircraft and seven