FedEx Corp. (FDX – Analyst Report) is a leading player in the field of global express delivery services. The company provides a broad portfolio of transportation, e-commerce and business services.
FedEx believes that rising e-commerce spending to generate strong business in ground shipments. FedEx is presently concentrating on network realignment to match the current demand level, and ramping up its performance to gain competitive edge over its peers. In addition, the company’s focus on buybacks to enhance shareholder value is also encouraging.
FedEx has a mixed track record with respect to earnings. The company has delivered positive earnings surprises in two of the last four quarters, with an average beat of 2.38%.
Zacks Rank: Currently, FedEx has a Zacks Rank #4 (Sell), but that could definitely change following FedEx’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: FedEx’s first quarter fiscal 2016 (ended Aug 31, 2015) earnings per share of $2.42 per share fell short of the Zacks Consensus Estimate of $2.44. Earnings (on an adjusted basis) were up 14.15% on a year-over-year basis.
Revenue: Quarterly revenues climbed 5% year over year to $12.28 billion edging past the Zacks Consensus Estimate of $12.23 billion.
Key Stats : FedEx trimmed its earnings per share outlook primarily due to higher than expected costs at the FedEx Ground unit. Moreover, soft demand for some shipments that move by truck also contributed to the company slashing its earnings outlook. The company now expects earnings per share in the band of $10.40 to $10.90 (previous outlook had called for earnings in the range of $10.60 to $11.10).The Zacks Consensus Estimate of $10.81 per share is within the new guidance range.
Stock Price : The earnings miss coupled with the guidance cut disappointed investors and the stock was down 2.96% in premarket trading at the time of writing.
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