FedEx Fades After Earnings, Earnings Miss Targets| Investor Business Daily

Ship heavyweight FedEx (FDX) fiscal Q2 revenue and earnings results fell short of expectations after Tuesday’s close. FDX shares fell sharply in late trading.


FedEx reported EPS of $3.99 on revenue of $22.2 billion. That marked a 25% gain expected by analysts polled by FactSet, short of the 32% increase to $4.19 a share. Revenue targets a 1.9% gain to $22.36 billion.

Cost-cutting measures and cheaper fuel helped push the shipping leader’s operating margin to 6.4%, up from 5.3% a year ago.

FedEx revenue rose 32% in its first quarter, the company’s first annual increase in five quarters. Revenue has not increased since last year’s August quarter.

According to a report on Tuesday, the analyst consensus had forecast an earnings gain of nearly 22% in fiscal 2024. Revenue was expected to fall 1%. Management kept its full-year earnings outlook steady and cut its revenue guidance on Tuesday.

FedEx shares ended Tuesday’s close with a 62% year-to-date gain. Dec. After breaking out of the cup base on the 8th, the stock remained in a buy zone. Shares fell more than 7% in after-hours trading, threatening a breakout for the stock.

Competitor UPS (UPS) shares lost less than 2% in late trade. Despite a 21% rebound since late October, the stock is down 7% since the start of the year. Its revenue has been in decline for three quarters, with revenue falling in the four quarters through October.

You may also like:

The oil industry competes for consolidation in the Permian Basin

Get an edge in the stock market with IBD Digital

See also  Stock futures are higher on Credit Suisse buys

Should Tesla stock be bought or sold?

Stocks near a buy zone

Futures: Nasdaq Tops Key Level; 4 AI stocks near buy points

Leave a Reply

Your email address will not be published. Required fields are marked *