The stock of FedEx (FDX) is up 6% after the shipping and logistics company reported top and bottom line beats for its Fiscal first-quarter financial results.
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The Memphis, Tennessee-based company announced earnings per share (EPS) of $3.83, which beat the $3.59 expected by analysts. Revenue of $22.24 billion came out ahead of the $21.66 billion that was the consensus expectation on Wall Street.
Average daily volumes in the U.S. saw an overall increase of 6%. “Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience,” said FedEx in its earnings statement.
FedEx’s earnings per share. Source: Main Street Data
Guidance
In terms of forward guidance, FedEx said that it sees revenue growth in Fiscal 2026 in a range of 4% to 6%, compared with Wall Street consensus of 1.2%. Management expects full-year earnings of $17.20 to $19. At the midpoint that’s $18.10, which is below estimates of $18.21.
In the earnings release, FedEx management said that they are continuing the process of spinning off FedEx Freight into a new publicly traded company, with an expected completion date of June 2026. FDX stock has declined 18% this year.
Is FDX Stock a Buy?
The stock of FedEx has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 14 Buy, five Hold, and two Sell recommendations issued in the last three months. The average FDX price target of $265.10 implies 17.04% upside from current levels. These ratings could change after the company’s financial results.
