FedEx(FDX, $163.25) misses fiscal Q2 earnings; disappoints on 2020 guidance
FedEx missed earnings estimates for its fiscal-second-quarter, and also provided lower-than-expected guidance for the full fiscal year 2020.
In the quarter ended Nov. 30, the courier delivery service company’s earnings came in at $2.13 a share, lower than the year-ago quarter’s $3.51. The figure also missed the $2.60 expected by analysts polled by FactSet.
FedEx’s adjusted earnings of $2.51 also fell below analysts’ estimate of $2.78.
The second-quarter earnings were affected by charges of 19 cents a share each for expense related to integrating TNT Express and for aircraft-asset impairment.
The company cited weak global economic conditions, increased FedEx Ground costs from expanded service offerings, the loss of business from a large customer, a continuing mix shift to lower-yielding services and a more competitive pricing environment as some of the factors behind declining operating results.
This week, Amazon temporarily barred certain third-party sellers from using the FedEx Ground delivery network to handle Prime shipments. Earlier in the year, FedEx announced that it’s terminating its ground delivery contract with Amazon, which is building its own logistics network.
Looking ahead, FedEx now expects fiscal full-year 2020 earnings of $9.10 to $10.35 a share – before the impact of a year-end accounting adjustment for a retirement plan. It was unable to forecast the fiscal 2020 year-end mark-to-market (MTM) retirement plan accounting adjustment. The company said earnings should range between $10.25 and $11.50 a share before that adjustment and excluding TNT Express integration expenses and aircraft impairment charges. Analysts surveyed by FactSet were expecting $12.09.
Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer, indicated that FedEx’s revised guidance reflects lower-than-expected revenue at each of its transportation segments and higher-than-expected expenses driven by continued mix shift to residential delivery services. He further mentioned that the company is implementing reductions to the global FedEx Express air network to effectively match capacity with demand, and also taking steps to lower costs.
FDX in upward trend: price rose above 50-day moving average on June 06, 2025
FDX moved above its 50-day moving average on June 06, 2025 date and that indicates a change from a downward trend to an upward trend. In of 30 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 27, 2025. You may want to consider a long position or call options on FDX as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FDX just turned positive on June 09, 2025. Looking at past instances where FDX's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for FDX crossed bullishly above the 50-day moving average on June 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 272 cases where FDX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
FDX broke above its upper Bollinger Band on July 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a 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 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 (2.614) is normal, around the industry mean (20.642). P/E Ratio (16.164) is within average values for comparable stocks, (22.262). Projected Growth (PEG Ratio) (1.011) is also within normal values, averaging (10.503). Dividend Yield (0.018) settles around the average of (0.037) among similar stocks. P/S Ratio (0.807) is also within normal values, averaging (1.303).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry AirFreightCouriers
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