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Memphis, Tennessee-based FedEx Corporation (FDX) is the leader in global express delivery services, providing transportation, e-commerce, and business services in the U.S. and internationally. With a market cap of $67.8 billion, FedEx operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments.
The freight and logistics giant is expected to release its third-quarter results after the markets close on Thursday, Mar. 20. Ahead of the event, analysts expect FedEx to report a $4.59 per share, up 18.9% from $3.86 per share reported in the year-ago quarter. While the company has missed analysts’ estimates once over the past four quarters, it has surpassed the expectations on three other occasions. Its adjusted EPS of $4.05 for the last reported quarter surpassed the consensus estimates by 3.9%.
For the full fiscal 2025, FedEx is expected to report an adjusted EPS of $19.14, up 7.5% from $17.80 in fiscal 2024. While in fiscal 2026, its earnings are expected to grow 13.1% year-over-year to $21.65 per share.
FDX stock has gained 10.8% over the past 52-week period, lagging behind the Industrial Select Sector SPDR Fund’s (XLI) 21.9% returns and the S&P 500 Index’s ($SPX) 24.1% surge during the same time frame.
FedEx’s stock prices observed a marginal drop in the trading session after the release of its mixed Q2 results on Dec. 19. Its results were adversely impacted due to the sustained weakness in U.S. industrial production that continued to pressure less-than-truckload industry demand. This led to an 89 basis points drop in revenues compared to the year-ago quarter to approximately $22 billion, missing the street’s expectations. Meanwhile, its adjusted net income dipped nearly 2% year-over-year to $990 million.
Observing the weak momentum, FedEx revised its guidance and now expects its annual revenue to remain flat compared to the year-ago quarter, down from the prior forecast of a low single-digit growth which unsettled investor confidence.
However, the analysts remain moderately bullish on the stock’s longer-term prospects. FDX has a consensus “Moderate Buy” rating overall. Out of the 27 analysts covering the stock, 17 recommend “Strong Buy,” one advises “Moderate Buy,” eight suggest “Hold,” and one advocates a “Strong Sell” rating. Its mean price target of $323.26 represents a 16% upside potential from current price levels.
