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FedEx Corporation (FDX), headquartered in Memphis, Tennessee, provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. Valued at $74.04 billion by market cap, the company offers time-definite delivery services and international trade services such as customs brokerage, and global ocean and air freight forwarding. It provides small-package ground delivery services, residential delivery services, less-than-truckload (LTL), freight services, in-store services, and other business solutions. The logistics major is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, Sep. 19.
Ahead of the event, analysts expect FDX to report a profit of $4.91 per share on a diluted basis, up 7.9% from $4.55 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. For fiscal 2024, FDX’s capital spending fell 16% year over year to $5.2 billion.
For fiscal 2025, analysts expect FDX to report EPS of $20.86, up 17.2% from $17.80 in fiscal 2024.
FDX stock has outperformed the S&P 500’s ($SPX) 14% gains on a YTD basis, with shares up 19.1% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 12.3% gains over the same time frame.
On Jun. 27, FDX shares rose more than 15% after the company reported its Q4 results. Despite a challenging macroeconomic environment, its adjusted EPS of $5.41 beat the consensus estimates of $5.34. Its revenue of $22.1 billion came in line with Wall Street estimates. The company’s operating margin grew 400 basis points to 8.5% thanks to its cost-cutting measures.
FDX revised its fiscal 2025 guidance with expectations of a low-to-mid single-digit percentage revenue growth year over year, driven by e-commerce and low inventory levels. It also raised its EPS guidance for fiscal 2025 to between $20 and $22, with the midpoint higher than the consensus estimate of $20.92. The logistics major said it would buy back $2.5 billion of its stock over the next year.
Analysts’ consensus opinion on FDX stock is bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 16 advise a “Strong Buy” rating, two have a “Moderate Buy” rating, seven recommend a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for FDX is $321.48, indicating a 6.8% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
