FedEx (NYSE:FDX) Posts Earnings Results, Beats Expectations By $993.09 EPS

Key Points

• FedEx reported quarterly EPS of $999.00, far above the analyst consensus of $5.91, according to the article. The company also posted a net margin of 4.88% and return on equity of 16.76%.
• Despite the earnings beat, FedEx stock fell 2.9% on the day, trading at $319.38. Shares also remained below both the 50-day and 200-day moving averages.
• The company maintained a quarterly dividend of $1.22 per share, payable July 7, implying an annualized dividend of $4.88 and a yield of 1.5%. Insider selling was also noted, with executives reducing their holdings over the prior 90 days.

FedEx (NYSE:FDX - Get Free Report) released its quarterly earnings data on Tuesday. The shipping service provider reported $999.00 EPS for the quarter, beating analysts' consensus estimates of $5.91 by $993.09, Zacks reports. FedEx had a net margin of 4.88% and a return on equity of 16.76%.

FedEx Stock Down 2.9%

Shares of FedEx stock traded down $9.40 during trading hours on Tuesday, hitting $319.38. 1,949,521 shares of the company's stock traded hands, compared to its average volume of 2,255,896. The stock has a 50 day simple moving average of $367.67 and a 200-day simple moving average of $345.54. The company has a market cap of $76.21 billion, a PE ratio of 17.00, a PEG ratio of 1.48 and a beta of 1.28. FedEx has a twelve month low of $172.88 and a twelve month high of $345.36. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77.

FedEx Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Monday, June 22nd will be paid a dividend of $1.22 per share. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, June 22nd. FedEx's payout ratio is currently 30.87%.

Insiders Place Their Bets

In other news, EVP Kawal Preet sold 4,900 shares of the company's stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the completion of the sale, the executive vice president owned 10,953 shares in the company, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Gina F. Adams sold 20,450 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total transaction of $7,493,902.50. Following the completion of the sale, the executive vice president owned 19,403 shares in the company, valued at approximately $7,110,229.35. The trade was a 51.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 48,104 shares of company stock worth $17,599,006 over the last 90 days. Insiders own 0.53% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. EFG International AG bought a new position in FedEx in the fourth quarter valued at about $27,000. Wilkerson Advisory Group LLC bought a new position in FedEx in the 4th quarter valued at $29,000. Intesa Sanpaolo Wealth Management bought a new position in shares of FedEx during the 4th quarter valued at $33,000. Wealth Watch Advisors INC purchased a new stake in FedEx during the 3rd quarter valued at about $28,000. Finally, Uniplan Investment Counsel Inc. bought a new position in shares of FedEx in the fourth quarter worth approximately $36,000. Institutional investors own 84.47% of the company's stock.

Analyst Upgrades and Downgrades

FDX has been the topic of a number of analyst reports. Morgan Stanley increased their price target on FedEx from $220.00 to $230.00 and gave the company an "underweight" rating in a research note on Friday, March 20th. Citigroup began coverage on FedEx in a research note on Thursday, May 21st. They set a "buy" rating and a $443.00 target price on the stock. HSBC lowered their target price on shares of FedEx from $360.00 to $289.89 and set a "hold" rating on the stock in a report on Monday, June 1st. Seaport Research Partners started coverage on FedEx in a report on Wednesday, May 27th. They issued a "buy" rating on the stock. Finally, Zacks Research lowered shares of FedEx from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 18th. Eighteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, FedEx has an average rating of "Moderate Buy" and a consensus target price of $358.14.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx is heading into earnings with analysts expecting solid profit and revenue growth, and some market watchers see the stock as a turnaround story with further upside potential. FedEx (FDX) Earnings Preview: First Report as Standalone Parcel Company
• Positive Sentiment: Investor interest remains high ahead of the report, with commentary suggesting FedEx could be in position for a fresh high if results and guidance impress. Here's How Much FedEx Stock Is Expected to Move After Earnings
• Neutral Sentiment: FedEx is one of several major companies on the earnings calendar this week, so the stock may be trading on anticipation rather than company-specific news alone. Cerebras, FedEx, Carnival: Earnings to watch on Tuesday
• Negative Sentiment: Broader market weakness, especially the tech-led sell-off and softer futures, is creating a cautious tone that can spill over into FedEx shares. AI Selling Overseas Reaches Pre-Market Futures

About FedEx

FedEx Corporation NYSE: FDX is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx's core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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