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Key Takeaways
- FedEx is scheduled to report fiscal third quarter earnings after the closing of Thursday.
- Analysts are mostly bullish on the shipping giant's stock.
- FedEx is expected post higher revenue and profit than a year ago.
FedEx (FDX), the shipping giant, is expected to release its fiscal third-quarter results on Thursday after the closing bell. Analysts are mostly bullish about the stock.
Of the 15 analysts who follow FedEx stock and are tracked by Visible Alpha, 12 call it a "buy," two a "hold," and one a "sell." Their average price target near $319 would suggest 30% upside from Monday's close.
Analysts expect adjusted earnings (EPS) to be up 20% from a previous year to $4.63, and revenue to be up 1% to $21.96 Billion. FedEx (and UPS, its shipping rival) saw their revenue fall year-overyear in eight out of the nine previous quarters.
Morgan Stanley Says FedEx Likely Had 'Solid Peak Season'
Morgan Stanley analysts, who have an "underweight" rating and $200 price target on the stock, wrote this month that they believe FedEx had a "solid peak season but no major acceleration in underlying demand/macro trends."
The analysts said they "see headwinds from an overall compressed peak season," along with one more month of unwinding its U.S. Postal Service partnership. They also noted the likelihood that FedEx's DRIVE program—which the company said is expected to create "permanent cost reductions" of $2.2 billion—would be "not as helpful as expected" in the third quarter.
Last quarter, the company failed to meet its own expectations and announced that it would spin-off its FedEx Freight division into a stand-alone public company in the next 18 months. Citi analysts had stated that such a decision could “unlock valuable.”
FedEx shares are down about 3% over the past 12 months, at $245.30 as of Monday's close.
UPDATE—March 17, 2025: This article has been updated since it was first published to reflect more recent analyst estimates and share price values.
