FedEx (NYSE:FDX) Issues FY 2027 Earnings Guidance

FedEx (NYSE:FDX) updated its FY 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 16.900-18.100 for the period, compared to the consensus EPS estimate of 19.920. The company issued revenue guidance of $97.6 billion-$97.6 billion, compared to the consensus revenue estimate of $91.0 billion.

FedEx Stock Down 0.1%

FDX opened at $316.89 on Thursday. FedEx has a fifty-two week low of $172.88 and a fifty-two week high of $345.36. The company’s 50-day moving average is $365.49 and its 200 day moving average is $346.18. The firm has a market capitalization of $75.61 billion, a P/E ratio of 17.12, a PEG ratio of 1.44 and a beta of 1.28. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44.

FedEx (NYSE:FDX) last released its earnings results on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.91 by $0.40. FedEx had a return on equity of 16.93% and a net margin of 4.68%.The company had revenue of $25.01 billion during the quarter, compared to analyst estimates of $24.04 billion. During the same period in the prior year, the company posted $6.07 earnings per share. FedEx’s quarterly revenue was up 12.5% on a year-over-year basis. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. Research analysts expect that FedEx will post 21.59 earnings per share for the current fiscal year.

FedEx Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Monday, June 22nd will be paid a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Monday, June 22nd. FedEx’s payout ratio is presently 25.97%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on FDX. BMO Capital Markets reiterated a “market perform” rating on shares of FedEx in a research note on Wednesday. Rothschild & Co Redburn reduced their price objective on shares of FedEx from $375.00 to $344.00 and set a “neutral” rating for the company in a research note on Tuesday, June 2nd. Barclays decreased their target price on FedEx from $450.00 to $425.00 and set an “overweight” rating on the stock in a research note on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft cut shares of FedEx from a “buy” rating to a “hold” rating in a research report on Wednesday, May 27th. Finally, Susquehanna increased their price target on shares of FedEx from $410.00 to $455.00 and gave the company a “positive” rating in a research report on Friday, March 20th. Eighteen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, FedEx presently has a consensus rating of “Moderate Buy” and a consensus target price of $351.60.

Insider Transactions at FedEx

In related news, EVP Gina F. Adams sold 20,450 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total value of $7,493,902.50. Following the completion of the transaction, the executive vice president directly owned 19,403 shares in the company, valued at $7,110,229.35. This trade represents a 51.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kawal Preet sold 4,900 shares of FedEx stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the transaction, the executive vice president owned 10,953 shares of the company’s stock, valued at $4,029,499.17. The trade was a 30.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 48,104 shares of company stock worth $17,599,006 over the last 90 days. 0.53% of the stock is currently owned by insiders.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx topped Q4 estimates with adjusted EPS of $6.31 and revenue of about $25.0 billion, both above Wall Street forecasts, while revenue rose 12.5% year over year. FedEx Reports Strong Fourth Quarter and Full-Year Results
• Positive Sentiment: Management highlighted strong underlying momentum, including premium parcel growth, cost savings, improved cash flow, and benefits from the freight spin-off, which Bank of America said points to solid operating execution. FedEx strong underlying momentum highlighted by Bank of America, as shares fall on near-term noise
• Neutral Sentiment: FedEx completed the separation of FedEx Freight, and several updates suggest the company is redeploying assets and simplifying its network, which may help long-term efficiency but adds near-term transition noise. More FedEx MD-11 cargo jets return to service, others are retired
• Negative Sentiment: Shares are falling because FY2027 adjusted EPS guidance of $16.90 to $18.10 came in below consensus, and analysts said the calendar-year reporting shift made the outlook harder to interpret. FedEx’s Calendar Shift Sparked Confusion: Analyst
• Negative Sentiment: Multiple reports said investors were disappointed by margin pressure in the core delivery business, with lower operating margin and “near-term noise” outweighing the earnings beat in the stock reaction. FedEx drops on margin hit as investors gauge freight spin-off fortunes

Institutional Trading of FedEx

Several institutional investors have recently added to or reduced their stakes in FDX. EFG International AG bought a new stake in FedEx in the 4th quarter worth about $27,000. Wilkerson Advisory Group LLC purchased a new stake in FedEx in the 4th quarter worth approximately $29,000. Intesa Sanpaolo Wealth Management purchased a new stake in shares of FedEx in the fourth quarter worth $33,000. Wealth Watch Advisors INC bought a new stake in FedEx during the third quarter valued at about $28,000. Finally, Uniplan Investment Counsel Inc. bought a new stake in FedEx during the 4th quarter valued at approximately $36,000. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.