FedEx (FDX) is one of the more noteworthy names on this week's earnings calendar and for good reason it seems. The stock jumped more than 11% out of the gate Wednesday after the logistics giant beat top- and bottom-line expectations for its fiscal fourth quarter and issued an inline outlook for its fiscal 2025.
In the quarter ended May 31, FedEx's said its revenue increased 0.9% from the year prior to $22.1 billion and its operating margin improved 40 basis points to 8.5%. (A basis point = 0.01%.) The company also reported a 9.5% year-over-year increase in its earnings per share (EPS) to $5.41.
"We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a challenging revenue environment," FedEx CEO Raj Subramaniam said in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Subramaniam added that the results reflect the continued execution of the company's DRIVE cost-cutting initiatives. "We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world's most flexible, efficient, and intelligent network," the executive said.
FedEx's top- and bottom-line results came in ahead of analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $22.07 billion and earnings of $5.35 per share.
FDX also provided its outlook on fiscal 2025, calling for low-to-mid single-digit percentage revenue growth from the prior year and earnings in the range of $20 to $22 per share. This satisfied analysts' expectations for revenue growth of 3.1% and earnings of $20.91 per share.
Is FedEx stock a buy, sell or hold?
Wall Street is bullish towards the industrial stock. According to S&P Global Market Intelligence, the average analyst target price for FDX stock is $312.87, representing implied upside of roughly 7% to current levels. Additionally, the consensus recommendation is Buy.
Financial service firm Stifel is one of the more bullish outfits on FDX stock with a Buy rating and an updated price target of $327, increased from its previous target of $303.
"FedEx has been powering through a bold and transformative cost savings program in DRIVE, and network consolidation in Network 2.0," Stifel said in a note this morning. "There's a lot of good stuff happening at FedEx right now, in our view, and provided management can stay on track, we continue to like the opportunity here."
The $327 price target represents implied upside of nearly 12% to current levels.
Related Content
-
Stock Market Today: Dow Logs Longest Losing Streak Since AprilThe November Producer Price Index showed that inflation remains a tough beast to tame.
-
Why Uber Stock Is Volatile After GM's Cruise AnnouncementUber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
Stock Market Today: Dow Logs Longest Losing Streak Since April
The November Producer Price Index showed that inflation remains a tough beast to tame.
-
Why Uber Stock Is Volatile After GM's Cruise Announcement
Uber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
Why Adobe Stock Is Down After Its Earnings BeatAdobe stock is lower Thursday despite the tech giant beating expectations for its fiscal 2024 fourth quarter. Here's what you need to know.
-
Three Possible Tax Impacts for Retirees Under TrumpHow might a second Trump term affect your tax bill in retirement — or the inheritance tax bill for your heirs? This pro has three predictions.
-
What to Know About Leverage and Bitcoin's Meteoric RiseLeverage in the financial world can lead to astonishing success or a crushing collapse. How are investors using leverage to invest in bitcoin?
-
How Do You Know When It's Time to Change Financial Advisers?Sometimes a breakup is for the best. Here's how to handle 'the talk' and make the switch to a new professional who's a better fit for you.
-
Stock Market Today: Tech Stocks Rally as CPI Supports Lower RatesAn inline inflation report sealed the deal for a December rate cut and sent the tech sector soaring.
-
CPI Report Casts Doubt on Rate Cuts in 2025: What the Experts Are Saying About InflationCPI November Consumer Price Index data sealed the deal for a December rate cut, but the outlook for next year is less certain.
