Zacks Research Comments on FedEx Co.’s FY2024 Earnings (NYSE:FDX)

FedEx Co. (NYSE:FDX) – Equities research analysts at Zacks Research raised their FY2024 earnings per share estimates for shares of FedEx in a research report issued on Tuesday, April 9th. Zacks Research analyst M. Basu now anticipates that the shipping service provider will earn $17.71 per share for the year, up from their previous estimate of $17.57. The consensus estimate for FedEx’s current full-year earnings is $17.61 per share. Zacks Research also issued estimates for FedEx’s Q4 2024 earnings at $5.31 EPS, Q1 2025 earnings at $4.27 EPS, Q1 2026 earnings at $4.02 EPS, Q3 2026 earnings at $3.58 EPS and FY2026 earnings at $15.95 EPS.

FedEx (NYSE:FDX) last issued its earnings results on Thursday, March 21st. The shipping service provider reported $3.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.49 by $0.37. The business had revenue of $21.70 billion during the quarter, compared to the consensus estimate of $21.95 billion. FedEx had a return on equity of 16.60% and a net margin of 5.02%. The company’s revenue for the quarter was down 2.1% on a year-over-year basis. During the same period in the prior year, the business posted $3.41 EPS.

FDX has been the subject of several other research reports. Raymond James dropped their price target on FedEx from $279.00 to $275.00 and set an “outperform” rating for the company in a research report on Wednesday, December 20th. Stephens reduced their price objective on FedEx from $330.00 to $320.00 and set an “overweight” rating on the stock in a research note on Wednesday, December 20th. Evercore ISI boosted their price target on FedEx from $327.00 to $351.00 and gave the stock an “outperform” rating in a research note on Friday, March 22nd. Barclays boosted their price target on FedEx from $310.00 to $350.00 and gave the stock an “overweight” rating in a research note on Friday, March 22nd. Finally, Morgan Stanley upped their price objective on FedEx from $195.00 to $210.00 and gave the company an “equal weight” rating in a research note on Friday, March 22nd. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and eighteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $301.33.

FedEx Stock Performance

Shares of FDX stock opened at $267.80 on Thursday. The stock has a fifty day moving average price of $256.85 and a 200 day moving average price of $254.15. The stock has a market cap of $65.90 billion, a PE ratio of 15.44, a P/E/G ratio of 1.28 and a beta of 1.21. FedEx has a 1 year low of $213.80 and a 1 year high of $291.27. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.26 and a current ratio of 1.31.

Institutional Investors Weigh In On FedEx

A number of institutional investors and hedge funds have recently modified their holdings of FDX. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of FedEx by 11.0% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 133,075 shares of the shipping service provider’s stock valued at $35,254,000 after purchasing an additional 13,197 shares in the last quarter. Trust Point Inc. purchased a new stake in shares of FedEx in the fourth quarter valued at $282,000. Planned Solutions Inc. purchased a new stake in shares of FedEx in the fourth quarter valued at $32,000. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of FedEx by 2.3% in the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 595,122 shares of the shipping service provider’s stock valued at $157,660,000 after purchasing an additional 13,642 shares in the last quarter. Finally, Skba Capital Management LLC lifted its holdings in shares of FedEx by 0.3% in the third quarter. Skba Capital Management LLC now owns 39,320 shares of the shipping service provider’s stock valued at $10,417,000 after purchasing an additional 100 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company’s stock.

Insiders Place Their Bets

In other FedEx news, Chairman Frederick W. Smith sold 113,400 shares of the company’s stock in a transaction that occurred on Tuesday, April 9th. The stock was sold at an average price of $274.30, for a total value of $31,105,620.00. Following the completion of the sale, the chairman now directly owns 14,505,844 shares in the company, valued at $3,978,953,009.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, Chairman Frederick W. Smith sold 113,400 shares of the stock in a transaction on Tuesday, April 9th. The stock was sold at an average price of $274.30, for a total transaction of $31,105,620.00. Following the completion of the sale, the chairman now owns 14,505,844 shares in the company, valued at approximately $3,978,953,009.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Guy M. Erwin II sold 2,749 shares of the stock in a transaction on Tuesday, March 26th. The shares were sold at an average price of $289.11, for a total value of $794,763.39. Following the sale, the vice president now owns 486 shares of the company’s stock, valued at approximately $140,507.46. The disclosure for this sale can be found here. Insiders sold 136,668 shares of company stock worth $37,758,773 over the last ninety days. Company insiders own 8.73% of the company’s stock.

FedEx Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Monday, March 11th were issued a $1.26 dividend. This represents a $5.04 dividend on an annualized basis and a yield of 1.88%. The ex-dividend date of this dividend was Friday, March 8th. FedEx’s dividend payout ratio (DPR) is 29.07%.

FedEx announced that its board has initiated a share buyback plan on Thursday, March 21st that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the shipping service provider to buy up to 7.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

FedEx Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.