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Takeaways
- FedEx will announce its fiscal third-quarter results after the closing bell of Thursday.
- Analysts are mostly bullish on the shipping giant's stock, with an average price target more than 30% higher than Friday's closing level.
- Analysts expect adjusted earnings to have increased 20% year-overyear to $4.64, and revenue to have increased 1% to $21.97 Billion.
FedEx (FDX), the shipping giant, is expected to release its fiscal third-quarter results on Thursday after the closing bell. Analysts are largely 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." They have an average price target of $318.60 on the stock, more than 31% higher than Friday's closing level just above $241.
Analysts expect adjusted earnings to have increased 20% over the past year to $4.64 per share and revenue to have increased 1% to $21.97billion. After the pandemic, FedEx and UPS (the shipping rival) both saw their revenue decline year-over-year.
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.
The company missed expectations last quarter, and announced that it would spin-off its FedEx Freight division into a stand-alone public company in the next 18 months. Citi analysts said that such a move would “unlock value.”
FedEx shares, down 5% in the last 12 months, closed at their lowest levels in more than one year.
