FDX Earnings: FedEx Reports Strong Financial Results and Raises Guidance

Shipping and logistics giant FedEx (FDX) has reported financial results that beat Wall Street forecasts on the top and bottom lines, and raised its forward guidance.

The Memphis, Tennessee-based company announced earnings per share (EPS) of $5.25, which topped the $4.15 expected on Wall Street. Revenue in the period totaled $24 billion, which was ahead of the $23.49 billion consensus forecast among analysts.

Management attributed the strong quarterly results to growth in its deliveries during the year-end holiday quarter. Looking ahead, FedEx raised its full-year profit forecast, saying it now expects earnings for its current fiscal year ending May 31 to be between $19.30 and $20.10 per share.

FedEx’s income statement. Source: The Fly

Breaking Down FedEx’s Results

The company also said that it now expects its full-year revenue to rise 6% to 6.5% year-over-year, compared to its previous forecast of growth between 5% and 6%. FedEx is in the midst of a multi-year restructuring program that includes slashing billions of dollars in costs, combining its Ground and Express delivery options, and spinning off its Freight trucking business on June 1 of this year.

FedEx said operating results in its Express unit improved in the latest quarter, helped by stronger U.S. and international package pricing, higher domestic volumes, and ongoing cost cuts. However, the gains were partly offset by higher wages and incentive pay, as well as rising transportation costs and tariff impacts.

Is FDX Stock a Buy?

Federal Express stock has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 16 Buy, five Hold, and two Sell recommendations issued in the last three months. The average FDX price target of $384.70 implies 8.34% upside from current levels. These ratings could change after the company’s financial results.