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FedEx Corporation (FDX) is a transportation, e-commerce, and business services company based in Memphis, Tennessee. Valued at a market cap of $50.3 billion, the company provides a broad portfolio of services, including express shipping, ground delivery, freight transportation, logistics, and supply chain management. It is scheduled to announce its fiscal Q4 earnings for 2025 after the market closes on Tuesday, Jun. 24.
Ahead of this event, analysts expect this transport company to report a profit of $6.03 per share, up 11.5% from $5.41 per share in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in two of the last four quarters, while missing on two other occasions. In Q3, FDX’s EPS of $4.51 fell short of the forecasted figure by 3%.
For fiscal 2025, analysts expect FDX to report a profit of $18.21 per share, up 2.3% from $17.80 in fiscal 2024. Its EPS is expected to further grow 8.6% year-over-year to $19.78 in fiscal 2026.
Shares of FDX have declined 21.1% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 8.7% rise, and the Industrial Select Sector SPDR Fund’s (XLI) 5.5% gain over the same time frame.
On Mar. 20, FDX released its mixed Q3 results, and shares of the company fell 6.5% in the following trading session. It posted revenue of $22.2 billion, which advanced 1.9% from the year-ago quarter and topped the consensus estimates by 1.2%. This top-line beat was driven by a 2.7% increase in revenue from the express segment, which also helped offset declines in the freight segment. On the earnings front, its adjusted EPS rose 16.8% year-over-year to $4.51, supported by effective cost-saving initiatives under the DRIVE program. However, the figure came in 3% below Wall Street expectations, leading to investor disappointment.
Adding to the downtick, FDX lowered its fiscal 2025 revenue and adjusted EPS guidance, citing continued weakness and uncertainty in the U.S. industrial economy. The company now expects revenue to be flat to slightly down year-over-year, and projects adjusted EPS to be in the range of $18 to $18.60.
Wall Street analysts are moderately optimistic about FDX’s stock, with a “Moderate Buy" rating overall. Among 30 analysts covering the stock, 19 recommend "Strong Buy," one suggests a “Moderate Buy,” eight indicate “Hold,” and two give “Strong Sell” rating. The mean price target for FDX is $284.34, which indicates a notable 35.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
