FedEx (NYSE:FDX) Releases Quarterly Earnings Results, Beats Estimates By $1.64 EPS

Key Points

• FedEx beat quarterly expectations: The company reported EPS of $4.98, exceeding the $3.34 consensus by $1.64, while revenue reached $22.93 billion versus expectations of $22.73 billion.
• Shares slipped 0.7% to $305 despite the earnings beat. Investors remain concerned about wage inflation, pilot-contract costs, stranded expenses and weak freight demand.
• FedEx declared a quarterly dividend of $1.22 per share, equivalent to a $4.88 annualized payout and a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $362.60.

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

FedEx Trading Down 0.7%

Shares of FedEx stock traded down $2.10 on Wednesday, hitting $305.00. 1,492,857 shares of the company's stock traded hands, compared to its average volume of 1,984,459. The company has a fifty day moving average of $305.43 and a two-hundred day moving average of $337.18. FedEx has a one year low of $198.00 and a one year high of $345.36. The company has a market capitalization of $72.19 billion, a price-to-earnings ratio of 16.48, a price-to-earnings-growth ratio of 1.53 and a beta of 1.28. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.48 and a quick ratio of 1.44.

FedEx Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Monday, September 14th were given a dividend of $1.22 per share. The ex-dividend date was Monday, September 14th. This represents a $4.88 annualized dividend and a dividend yield of 1.6%. FedEx's dividend payout ratio is presently 26.36%.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Analysts remain broadly optimistic ahead of earnings, with consensus estimates calling for approximately $3.38 in adjusted earnings per share and $22.58 billion in revenue. Positive results or an improved outlook could support the stock. FedEx Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Positive Sentiment: FedEx’s appointment of Jamere Jackson as CFO, effective November 30, is viewed favorably because of his finance leadership at AutoZone, Hertz and Nielsen. Investors may expect stronger capital allocation, cost controls and potentially higher shareholder returns following the FedEx Freight spinoff. Did New CFO Hire Just Shift FedEx Investment Narrative?
• Positive Sentiment: FedEx is being viewed as having a comparatively conservative dividend profile, retaining more cash flow than some logistics peers. That may appeal to income-oriented investors and provide flexibility for buybacks or other shareholder returns.
• Neutral Sentiment: United Parcel Service’s third-quarter beat and raised outlook have lifted the broader delivery sector, but they also raise expectations for FedEx’s upcoming results. FedEx’s stock has not matched UPS’s reaction, reflecting uncertainty about its own earnings and guidance. UPS Rises 5% as Q3 Beat Lifts Full-Year Outlook; FedEx Inches Higher
• Negative Sentiment: Investors are concerned that wage inflation, pilot-contract expenses and stranded costs could pressure third-quarter margins, potentially offsetting savings from FedEx’s transformation program. FedEx Gears Up for Q3 Earnings: What's in Store for the Stock?
• Negative Sentiment: Weak freight demand remains a concern following the FedEx Freight separation, adding pressure to the company’s outlook and making management’s earnings guidance especially important.

Analysts Set New Price Targets

Several research analysts recently issued reports on FDX shares. Citizens Jmp started coverage on FedEx in a research report on Wednesday, July 15th. They set a "market outperform" rating and a $375.00 target price for the company. Truist Financial reduced their price target on FedEx from $365.00 to $350.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Evercore upped their price target on FedEx from $350.00 to $351.00 in a research report on Monday, September 28th. Wall Street Zen raised FedEx to a "hold" rating in a research note on Saturday, August 8th. Finally, Raymond James Financial restated an "outperform" rating on shares of FedEx in a research report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock 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.

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