FedEx Corporation (NYSE:FDX) is a global leader in transportation, e-commerce, and business services. Known for its overnight shipping service, FedEx operates in over 220 countries and territories. The company faces competition from other logistics giants like United Parcel Service (UPS) and DHL. Recently, Stephens updated FedEx's stock rating to "Overweight," with the stock priced at $230.15.
Despite this positive rating, FedEx's shares have experienced a decline following disappointing fiscal third-quarter results. Analyst Bruce Chan from Stifel maintained a Buy rating but reduced the price target from $364 to $354. FedEx reported adjusted earnings of $4.51 per share, missing the consensus estimate of $4.56 per share. This shortfall occurred despite a share buyback benefit of 12 cents per share.
FedEx's total revenues exceeded expectations, driven by an increase in legacy Ground volumes. However, yields were softer than anticipated due to a shift towards Economy products. Management lowered the fiscal year-end guidance by 6% at the midpoint, citing yield pressure, a soft industrial sector, macroeconomic uncertainty, and ongoing inflationary cost pressures, particularly in wages and purchased transportation.
Analyst Daniel Imbro from Stephens reiterated an Overweight rating on FedEx but also reduced the price target from $320 to $300. FedEx adjusted its fiscal 2025 earnings guidance to a range of $18.00 to $18.60 per share due to softer revenues and continued cost inflation. The current price of FedEx is $230.90, reflecting a decrease of 6.22% or $15.31.
Today, FedEx's stock has fluctuated between a low of $217.32 and a high of $231.39. Over the past year, the stock has reached a high of $313.84 and a low of $217.22. FedEx's market capitalization stands at approximately $55.61 billion, with a trading volume of 6,885,426 shares on the New York Stock Exchange (NYSE).
