Key insights
- FedEx is set to report earnings, with options pricing suggesting a potential 7% stock move. While a spin-off of its freight business may impact comparisons, analysts remain largely bullish, expecting continued cost-cutting focus and potential upside. The results could provide insights into the logistics sector's operational efficiency and outlook.
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FedEx is scheduled to report earnings after the closing bell Tuesday, with the shipping giant's stock seen potentially climbing to a fresh high following the results.1
Based on current options pricing, FedEx (FDX) shares are seen swinging up to about 7% in either direction by the end of the week. A move of that size from Monday afternoon's level around $330 could see the shipping giant's stock rise to a record high above $352, or drag it back below $309.
FedEx shares have gained more than 40% since the start of the year, as investors cheered a rosy outlook and the spin-off of FedEx Freight (FDXF), which started trading as a separate company late last month and will report earnings Thursday.23
FedEx's earnings Tuesday could offer investors a fresh look into its newly slimmed-down operations after the spin-off of its freight business.
Bank of America analysts recent lowered their price target for FedEx to $376 from $440 following the spin-off to account for the removal of the freight business, and said investor attention will likely be on where FedEx still has room to cut costs. 4 Investors may also be watching for any updates on the company's search for a new CFO, after John Dietrich stepped down earlier this month.5
Analysts expect FedEx to report adjusted earnings per share of $5.90 on a nearly 8% year-over-year jump in revenue to $23.98 billion for its fiscal fourth quarter, according to estimates compiled by Visible Alpha.
Analysts are largely bullish on FedEx's stock, with all but one of the 10 analysts with current ratings tracked by Visible Alpha calling the stock a "buy," along with one neutral rating. Their average target of $410 would suggest upside of nearly 25% from Monday's level.