FedEx posted its first-quarter fiscal 2023 adjusted earnings of $3.44 per share, below the Zacks Consensus Estimate of $3.69, amidst global volume weakness. (as reported in Zacks Equity Research).
For the quarter ending Aug 31, revenues climbed +5.44% from the year-ago quarter to $23,200 million, missing the Zacks Consensus Estimate of $23,213.4 million.
FedEx Express (including TNT Express) revenues were up +1% from the prior-year quarter to $11.13 billion. Package revenues in this business segment rose +2%, while freight revenues were flat. Operating income in the segment plunged -69% year-over-year to $174 million, amidst lower global package and freight volume.
FedEx Ground revenues climbed +6% year over year to $8.16 billion for the period due to increased fuel surcharges, among other factors.
FedEx Freight revenues surged +21% from the year-ago fiscal quarter to $2.72 billion, on the back of higher revenues per shipment.
For the fiscal second quarter, FDX projects revenues in the $23.5-$24 billion range, compared to the Zacks Consensus Estimate of $23.7 billion. The company is expecting earnings per share for the quarter (excluding costs related to business optimization initiatives and business realignment activities) to be $2.75 or higher, lower than the Zacks Consensus Estimate of $4.02.
FedEx expects cost savings of $2.2-$2.7 billion in fiscal 2023. FedEx Express, FedEx Ground and FedEx Home Delivery shipping rates will be hiked by an average of 6.9% starting Jan 2, 2023. It will raise rates at its Freight unit by an average of 6.9-7.9%, depending on a customer’s transportation rate scale.
The 10-day moving average for FDX crossed bearishly below the 50-day moving average on May 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
FDX moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FDX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FDX entered a downward trend on May 16, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 51 cases where FDX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on FDX as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FDX advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
FDX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FDX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.298) is normal, around the industry mean (39.590). P/E Ratio (19.455) is within average values for comparable stocks, (29.203). Projected Growth (PEG Ratio) (1.358) is also within normal values, averaging (11.778). Dividend Yield (0.020) settles around the average of (0.045) among similar stocks. P/S Ratio (0.629) is also within normal values, averaging (1.201).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FDX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
A.I.dvisor indicates that over the last year, FDX has been loosely correlated with XPO. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if FDX jumps, then XPO could also see price increases.
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