FedEx (NYSE:FDX) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• FedEx reported earnings of $3.83 EPS, exceeding analysts' estimates of $3.71 EPS by $0.12.
• The company declared a quarterly dividend of $1.45, representing an annualized yield of 2.6%.
• FedEx's stock was trading up 0.3% to $226.51, with significant insider selling occurring recently, totaling about $2.23 million in shares.

FedEx (NYSE:FDX - Get Free Report) posted its earnings results on Thursday. The shipping service provider reported $3.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.71 by $0.12, Zacks reports. The company had revenue of $22.20 billion during the quarter, compared to analyst estimates of $21.74 billion. FedEx had a return on equity of 16.33% and a net margin of 4.65%.The company's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same period in the previous year, the company earned $3.60 EPS. FedEx updated its FY 2026 guidance to 17.200-19.000 EPS.

FedEx Price Performance

Shares of FedEx stock traded up $5.60 during trading hours on Friday, reaching $232.10. The stock had a trading volume of 8,378,809 shares, compared to its average volume of 2,232,425. The stock's 50 day moving average is $228.84 and its 200 day moving average is $226.29. The firm has a market capitalization of $54.76 billion, a PE ratio of 13.55, a PEG ratio of 1.34 and a beta of 1.20. FedEx has a twelve month low of $194.29 and a twelve month high of $308.53. The company has a current ratio of 1.25, a quick ratio of 1.21 and a debt-to-equity ratio of 0.73.

FedEx Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 8th will be given a dividend of $1.45 per share. The ex-dividend date is Monday, September 8th. This represents a $5.80 dividend on an annualized basis and a yield of 2.5%. FedEx's payout ratio is currently 34.36%.

Insider Activity

In related news, Director Marvin R. Ellison sold 3,610 shares of the stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $236.94, for a total value of $855,353.40. Following the transaction, the director directly owned 7,720 shares of the company's stock, valued at $1,829,176.80. This trade represents a 31.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director R Brad Martin sold 2,123 shares of FedEx stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $241.75, for a total transaction of $513,235.25. Following the completion of the sale, the director directly owned 8,935 shares in the company, valued at approximately $2,160,036.25. The trade was a 19.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 9,343 shares of company stock valued at $2,228,816 in the last 90 days. Company insiders own 0.53% of the company's stock.

Institutional Trading of FedEx

Institutional investors and hedge funds have recently modified their holdings of the business. Quantbot Technologies LP bought a new position in shares of FedEx during the second quarter worth about $186,000. Garden State Investment Advisory Services LLC bought a new position in shares of FedEx during the second quarter valued at $209,000. Vivaldi Capital Management LP grew its position in shares of FedEx by 6.4% during the 2nd quarter. Vivaldi Capital Management LP now owns 948 shares of the shipping service provider's stock worth $215,000 after buying an additional 57 shares during the period. Stonebridge Capital Advisors LLC raised its stake in shares of FedEx by 4.1% during the 2nd quarter. Stonebridge Capital Advisors LLC now owns 1,163 shares of the shipping service provider's stock worth $264,000 after purchasing an additional 46 shares in the last quarter. Finally, State of Wyoming acquired a new position in FedEx in the 2nd quarter valued at $392,000. 84.47% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FDX has been the subject of several analyst reports. UBS Group lifted their price objective on shares of FedEx from $293.00 to $314.00 and gave the stock a "buy" rating in a research note on Friday. Citigroup raised their price objective on shares of FedEx from $275.00 to $279.00 and gave the company a "buy" rating in a research note on Friday. Bank of America increased their price target on FedEx from $240.00 to $244.00 and gave the company a "neutral" rating in a research report on Friday. The Goldman Sachs Group cut their price target on shares of FedEx from $290.00 to $276.00 and set a "buy" rating for the company in a report on Friday, September 12th. Finally, BNP Paribas Exane upgraded FedEx from an "underperform" rating to an "outperform" rating and set a $270.00 price target on the stock in a research report on Thursday, July 3rd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $275.85.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.