Connect with us

Hi, what are you looking for?


FedEx is ‘setting the bar pretty low’: Expert

fedex shares up despite soft guidance

FedEx Corporation (NYSE: FDX) is trading up after the bell even though it reported lower-than-expected revenue for its fiscal second quarter on lower volumes, teasing an economic downturn.

Analyst reacts to FedEx future guidance

Still, investors are cheering earnings that topped Street estimates for the recent quarter.

For the full year, FedEx is now calling for $13 to $14 of adjusted EPS versus analysts at $14. Reacting to its guidance on Yahoo Finance Live, John Eade – the President of Argus Research said:

They’re setting the bar pretty low. There’s a good chance that FedEx does better than that. But I don’t think they want to overpromise and under deliver. They’re trying to get back in good graces of Wall Street and it’ll take a bit of time.

The parcel delivery company has also identified additional areas to cut costs. It now expects to trim costs by $3.7 billion in its fiscal 2023 – about a billion dollar more than its previous forecast.

For now, though, its operating margin (adjusted) stood at 5.3% – significantly below near 13% for UPS. But Eade noted:

That can be an opportunity for FedEx. If they’re able to take these costs out of their cost structure, you could see much sharper earnings growth going forward.

FedEx second-quarter earnings snapshot

  • Net income printed at $788 million versus the year-ago $1.0 billion
  • Per-share earnings also contracted from $3.88 to $3.07
  • Adjusted earnings were $3.18 a share as per the earnings press release
  • Revenue sunk 3.0% year-over-year to $22.8 billion as well
  • Consensus was $2.81 of adjusted EPS on $23.7 billion in revenue

Lower demand resulted in a massive 64% hit to operating income from “Express” – it’s internationally-focused segment. It was partially offset by strength in the Ground division, though.

FedEx shares are still down 35% versus the start of 2022.

The post FedEx is ‘setting the bar pretty low’: Expert appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Genesis Trading, the cryptocurrency brokerage and lender that halted customer withdrawals in the aftermath of FTX collapse, believes it can sort out its financial...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023