What to Expect From FedEx Earnings

By Chris Lange Updated Jan 13, 6:35AM EST · Published Jun 20, 1:15PM EDT

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What to Expect From FedEx Earnings — © courtesy of Boeing Co.

FedEx Corp. (NYSE: FDX) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates call for $3.28 in earnings per share (EPS) on $12.78 billion in revenue. In the same period of last year, the company posted EPS of $2.66 and $12.11 billion in revenue.

At the end of the previous quarter, Merrill Lynch commented that the third-quarter results improved the outlook for fiscal fourth-quarter margin targets. Considering the strong results, its target was for 12% Express operating margins in the fourth quarter (the firm had been at 11.3%), Merrill Lynch increased its fiscal 2016 and fiscal 2017 EPS estimates 4% each.

Credit Suisse also commented on the third quarter, saying part of what tripped up the Ground segment were operational complexities that arose from “extraordinary growth” in non-traditional e-commerce volumes such as “mattresses, canoes, swing sets, and big screen TVs.” FedEx is addressing this issue and the company expects a return to mid-teens Ground margins in the fourth quarter.

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Other analysts believe that this company is poised to benefit from strongly online spending going forward.

Apart from this, a few analysts weighed in on FedEx prior to the release of the earnings report:

Cowen reiterated a Buy rating.
Morgan Stanley reiterated a Hold rating.
Oppenheimer reiterated a Buy rating.
Stifel has a Buy rating with a $178 price target.

So far in 2016, FedEx has outperformed the broad markets, with the stock up 9%. Over the past 52 weeks, the stock is actually down about 8%.

Shares of FedEx were traded up 2.2% at $165.80 on Monday, with a consensus analyst price target of $179.52 and a 52-week trading range of $119.71 to $177.65.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.