FedEx Stock Is Delivering Gains Wednesday: What's Going On?

Author: Adam Eckert | June 26, 2024 10:33am

FedEx Corp (NYSE:FDX) shares are trading higher Wednesday after the company reported better-than-expected financial results and announced intentions to repurchase billions of its stock.

• Q4 Revenue: $22.1 billion, beat estimates of $22.056 billion

• Q4 EPS: $5.41, beat estimates of $5.37

FedEx Ground operating results increased due to reduced structural costs. FedEx Freight operating results increased due to higher yield and effective cost management. FedEx Express operating results declined primarily due to lower international yields. Overall revenue, operating income and operating margins increased on a year-over-year basis.

“These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver outstanding service to our customers,” said Raj Subramaniam, president and CEO of FedEx.

“We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world’s most flexible, efficient, and intelligent network.”

Outlook: FedEx sees full-year 2025 revenue growing in the low-to-mid single-digit percentage range. The company expects earnings of $18.25 per share to $20.25 per share in fiscal 2025.

FedEx also noted that it plans to repurchase $2.5 billion of its shares in fiscal 2025. The company currently has $5.1 billion remaining under its buyback program.

See Also: FedEx Q4 Earnings Highlights: Shares Surge On Revenue Beat, Guidance, $2.5-Billion Buyback, Freight Strategic Review

Analyst Changes: Multiple analysts raised price targets on the stock following the print.

• Baird analyst Garrett Holland maintained FedEx with an Outperform and raised the price target from $325 to $340.

• B of A Securities analyst Ken Hoexter maintained FedEx with a Buy and raised the price target from $340 to $347.

• Morgan Stanley analyst Ravi Shanker maintained FedEx with an Equal-Weight and raised the price target from $210 to $215.

• Goldman Sachs analyst Jordan Alliger maintained FedEx with a Buy and raised the price target from $316 to $333.

• Evercore ISI Group analyst Jonathan Chappell maintained FedEx with an Outperform and raised the price target from $318 to $339.

FDX Price Action: FedEx shares were up 12.4% at $288.10 at the time of writing Wednesday morning, per Benzinga Pro.

Photo: Shutterstock.

Posted In: FDX