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FedEx Q4 Earnings Preview: Share Buybacks, Job Cuts, Eight Simple Revenue Misses Among Factors to Watch – FedEx (NYSE:FDX)

Posted on by darion

A logistics and forwarding giant FedEx company FDX is scheduled to announce its fourth quarter (Q4) financial results after the market close on Tuesday, June 25.

Here are earnings estimates, analyst ratings and highlights to watch.

Earnings estimates: Analysts expect FedEx to report fourth-quarter revenue of $22.06 billion, according to Benzinga Pro estimates. In last year’s fourth quarter, the company’s revenue was $21.9 billion.

The company has missed analyst revenue estimates in eight quarters in a row and in eight of the last 10 quarters overall.

Analysts expect the company to report earnings per share of $5.37 for the fourth quarter, compared to $4.94 in the prior-year fourth quarter.

FedEx has topped analyst estimates for earnings per share in seven of the last 10 quarters.

Related Link: How to Make $500 a Month in FedEx Stock Ahead of Q4 Earnings

Analyst Ratings: Here are the latest analyst ratings and price targets for FedEx ahead of its quarterly earnings report.

  • Raymond James: Outperform, price target lowered from $325 to $300
  • Evercore ISI Group: Outperform Rating, Reduced Price Target from $351 to $318
  • Wells Fargo: Started with an equal weight rating, $275 price target
  • JPMorgan: Neutral rating, lowered price target from $301 to $296
  • UBS: Buy rating, lowered price target from $340 to $333

Key items to watch: FedEx recently unveiled a plan to streamline its European operations that could result in cost savings.

The company plans to reduce positions from 1,700 to 2,000 in segments including sales and back-office positions.

The announcement comes as the company aims to save between $250 million and $375 million through various cost-cutting plans.

In the third quarter, FedEx approved a $5 billion share repurchase plan. The company said it plans to repurchase $500 million worth of shares in the fourth quarter. Investors and analysts will likely be monitoring whether this process has been finalized and how much the company plans to purchase in the coming quarters.

The company’s lack of revenue is a concern for shareholders and analysts as FedEx works to continually transform its business.

“We are making significant progress in our transformation, while strengthening our value proposition and improving the customer experience. I have never been more confident in our future path as we build a more flexible, efficient and intelligent network.” – FedEx CEO Raj Subramaniam – he said after the third quarter results.

FDX price action: FedEx shares are trading at $255.58 compared to a 52-week trading range of $224.64 to $291.27. FedEx shares are up 13% over the past year and up just 1% year-to-date in 2024.

Read next: FedEx restores priority services to Kiev amid crisis in Ukraine; Operations in Russia and Belarus remain suspended

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