FedEx Corp. (NYSE: FDX) is set to report its fiscal second-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $3.94 in earnings per share (EPS) and $17.75 billion in revenue. In the same period of last year, the company said it had $3.18 in EPS and $16.31 billion in revenue.
Earlier this quarter, the company announced that it would raise shipping rates to kick off 2019. The rate increases apply to all its subsidiaries, FedEx Express, FedEx Ground and FedEx Freight, and will be effective January 7, 2019.
FedEx Express shipping rates will increase by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.
FedEx Ground and FedEx Home Delivery shipping rates will increase by an average of 4.9%. FedEx SmartPost shipping rates also will increase.
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FedEx Freight shipping rates will increase by an average of 5.9%. This rate change applies to eligible FedEx Freight shipments within the United States (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous United States and Canada, within Canada, between the contiguous United States and Mexico, and within Mexico.
Excluding Tuesday’s move, FedEx had underperformed the broad markets, with its stock down about 24% in the past 52 weeks. In just the past six months alone, the stock was down 31%.
A few analysts weighed in on FedEx ahead of the report:
- Credit Suisse has an Outperform rating with a $263 price target.
- Morgan Stanley has an Equal Weight rating and a $230 price target.
- Merrill Lynch has a Neutral rating.
- Citigroup has a Buy rating and a $275 price target.
- JPMorgan has a Buy rating with a $286 price target.
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Shares of FedEx were last seen up about 1% at $183.80, in a 52-week range of $181.28 to $274.66. The consensus analyst price target is $273.89.
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