FedEx (NYSE:FDX) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

FedEx (NYSE:FDX) released its earnings results on Tuesday. The shipping service provider reported $5.41 earnings per share for the quarter, topping the consensus estimate of $5.34 by $0.07, Briefing.com reports. FedEx had a net margin of 4.94% and a return on equity of 16.70%. The company had revenue of $22.11 billion during the quarter, compared to the consensus estimate of $22.04 billion. During the same quarter in the previous year, the firm earned $4.94 EPS. The company’s revenue was up .8% on a year-over-year basis. FedEx updated its FY25 guidance to $20.00-22.00 EPS and its FY 2025 guidance to 20.000-22.000 EPS.

FedEx Stock Performance

Shares of FDX opened at $295.47 on Friday. The company has a market capitalization of $72.71 billion, a PE ratio of 17.15, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16. FedEx has a one year low of $224.69 and a one year high of $296.86. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.36 and a quick ratio of 1.26. The company’s fifty day moving average price is $256.80 and its 200 day moving average price is $256.00.

FedEx Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 9th. Investors of record on Monday, June 24th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a yield of 1.87%. The ex-dividend date of this dividend is Monday, June 24th. This is an increase from FedEx’s previous quarterly dividend of $1.26. FedEx’s dividend payout ratio (DPR) is 32.04%.

Insider Buying and Selling

In other FedEx news, Chairman Frederick W. Smith sold 113,400 shares of the firm’s stock in a transaction on Tuesday, April 9th. The shares were sold at an average price of $274.30, for a total value of $31,105,620.00. Following the sale, the chairman now directly owns 14,505,844 shares in the company, valued at approximately $3,978,953,009.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other FedEx news, Chairman Frederick W. Smith sold 113,400 shares of the firm’s stock in a transaction on Tuesday, April 9th. The shares were sold at an average price of $274.30, for a total value of $31,105,620.00. Following the sale, the chairman now directly owns 14,505,844 shares in the company, valued at approximately $3,978,953,009.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Tracy B. Brightman sold 2,550 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was sold at an average price of $275.69, for a total transaction of $703,009.50. Following the completion of the sale, the executive vice president now owns 6,294 shares in the company, valued at $1,735,192.86. The disclosure for this sale can be found here. Insiders have sold 117,275 shares of company stock worth $32,177,298 in the last quarter. 8.73% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

FDX has been the subject of a number of recent research reports. Robert W. Baird boosted their price objective on shares of FedEx from $325.00 to $340.00 and gave the company an “outperform” rating in a research report on Wednesday. The Goldman Sachs Group upped their target price on shares of FedEx from $316.00 to $333.00 and gave the stock a “buy” rating in a research report on Wednesday. Oppenheimer restated a “market perform” rating on shares of FedEx in a research report on Wednesday. Jefferies Financial Group upped their target price on shares of FedEx from $265.00 to $300.00 and gave the stock a “hold” rating in a research report on Friday, March 22nd. Finally, TD Cowen upped their target price on shares of FedEx from $320.00 to $335.00 and gave the stock a “buy” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, six have given a hold rating and nineteen have given a buy rating to the company. According to MarketBeat.com, FedEx presently has a consensus rating of “Moderate Buy” and an average target price of $314.00.

FedEx declared that its Board of Directors has approved a stock repurchase program on Thursday, March 21st that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the shipping service provider to buy up to 7.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.