FedEx Corporation, listed on the NYSE as FDX, is a global leader in transportation, e-commerce, and business services. The company is known for its extensive logistics network and competes with major players like UPS and DHL. FedEx is set to release its third-quarter fiscal 2025 earnings on March 20, 2025, after the market closes.
Analysts have set the earnings per share (EPS) estimate at $4.66, reflecting a 20.7% increase from the previous year. Despite a 1.7% downward revision over the past 60 days, this growth is notable. The revenue forecast stands at $21.88 billion, a modest 0.8% rise from the same period last year, as highlighted by the data.
FedEx faces challenges due to weak revenues, attributed to demand erosion post-COVID-19. The normalization of volume and pricing trends has impacted the company's performance. Analysts have slightly revised the EPS estimate downward by 1% over the past month, which could influence investor reactions, as empirical studies suggest a link between earnings estimates and stock price movements.
The company operates with a price-to-earnings (P/E) ratio of 15.30, indicating how the market values its earnings. The price-to-sales ratio is 0.68, meaning investors pay 68 cents for every dollar of sales. FedEx's enterprise value to sales ratio is 0.88, slightly higher than its total sales, while the enterprise value to operating cash flow ratio is 11.31, reflecting its valuation relative to cash flow from operations.
FedEx maintains a debt-to-equity ratio of 0.28, showing a relatively low level of debt compared to its equity. The current ratio is 1.23, indicating the company's ability to cover short-term liabilities with short-term assets. These financial metrics provide insight into FedEx's financial health and market valuation.
