FedEx Corporation is scheduled to release its second-quarter earnings report on December 19. Investors and analysts are closely monitoring the company’s financial performance amidst a challenging market landscape. This article previews the anticipated earnings, market sentiment, and insights from Stock Target Advisor.
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Expected Q2 Earnings Report of FedEx Corporation
Wall Street analysts forecast FedEx to report earnings per share (EPS) of $3.90 for the second quarter, marking a year-over-year decline of 2.3%. The projected revenue is $22.07 billion, reflecting a marginal decline of 0.5% from the same quarter last year.
Detailed revenue projections for FedEx’s key divisions include:
- FedEx Express: Estimated revenues of $18.70 billion, a significant increase of 82.4% year-over-year.
- FedEx Ground: Expected revenues of $8.47 billion, representing a 2% year-over-year decline.
- FedEx Freight: Projected revenues of $2.38 billion, showing a modest 0.9% increase.
- Other and Eliminations: Analysts anticipate $945.05 million, up 11.6% year-over-year.
Stock Target Advisor’s Analysis on FedEx Corporation:
According to Stock Target Advisor, FedEx Corporation holds a Neutral rating, driven by two positive and two negative signals. The company’s stock price closed at $277.43, down 1.89% over the past week and 17.03% over the past month. While FedEx offers superior risk-adjusted returns and high dividend yields, its volatility and below-median total returns in the past five years are points of concern.
Stock Target Advisor’s 12-month price target for FedEx stands at $304.86, suggesting a 9.89% potential upside. Meanwhile, analysts’ consensus target price is higher at $315.48, with strong buy ratings dominating the outlook. The latest analyst ratings include:
- Wells Fargo: Hold with a target of $305.
- Barclays: Overweight with a revised target of $365.
- Citigroup: Buy with a target of $301.
Conclusion:
As FedEx (FDX) prepares to unveil its Q2 financials, investors are watching closely for signs of recovery in key divisions and alignment with analysts’ forecasts. The forthcoming earnings announcement will not only reveal FedEx’s current trajectory but also set the tone for its outlook in 2024.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
