Zacks Research Issues Pessimistic Outlook for FedEx Earnings

FedEx Co. (NYSE:FDX) – Equities researchers at Zacks Research reduced their FY2025 earnings per share estimates for FedEx in a note issued to investors on Thursday, January 9th. Zacks Research analyst M. Basu now expects that the shipping service provider will earn $19.72 per share for the year, down from their previous forecast of $20.86. The consensus estimate for FedEx’s current full-year earnings is $19.59 per share. Zacks Research also issued estimates for FedEx’s Q1 2027 earnings at $3.94 EPS and FY2027 earnings at $16.22 EPS.

FedEx (NYSE:FDX) last posted its quarterly earnings results on Thursday, December 19th. The shipping service provider reported $4.05 earnings per share for the quarter, beating analysts’ consensus estimates of $3.88 by $0.17. FedEx had a return on equity of 15.61% and a net margin of 4.62%. The business had revenue of $22 billion for the quarter, compared to analysts’ expectations of $22.14 billion. During the same quarter in the prior year, the business earned $3.99 EPS. The firm’s revenue for the quarter was down .7% on a year-over-year basis.

FDX has been the subject of a number of other research reports. BMO Capital Markets boosted their price objective on FedEx from $300.00 to $330.00 and gave the stock a “market perform” rating in a report on Friday, December 20th. UBS Group boosted their price target on FedEx from $311.00 to $350.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Stephens lowered their price objective on FedEx from $350.00 to $345.00 and set an “overweight” rating on the stock in a research report on Friday, December 20th. Susquehanna reduced their target price on shares of FedEx from $345.00 to $330.00 and set a “positive” rating for the company in a research report on Friday, September 20th. Finally, Raymond James raised their price target on shares of FedEx from $305.00 to $320.00 and gave the stock an “outperform” rating in a research report on Friday, December 20th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat, FedEx currently has a consensus rating of “Moderate Buy” and a consensus price target of $325.61.

FedEx Stock Performance

Shares of FDX stock opened at $277.63 on Monday. FedEx has a 52 week low of $234.45 and a 52 week high of $313.84. The company has a market capitalization of $66.87 billion, a price-to-earnings ratio of 17.13, a PEG ratio of 1.18 and a beta of 1.20. The company has a 50-day simple moving average of $283.89 and a 200 day simple moving average of $284.31. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.24 and a current ratio of 1.28.

Hedge Funds Weigh In On FedEx

Institutional investors have recently added to or reduced their stakes in the business. International Assets Investment Management LLC increased its stake in shares of FedEx by 473.8% in the 3rd quarter. International Assets Investment Management LLC now owns 784,691 shares of the shipping service provider’s stock valued at $2,147,540,000 after acquiring an additional 647,926 shares in the last quarter. Ameriprise Financial Inc. increased its stake in FedEx by 34.6% in the second quarter. Ameriprise Financial Inc. now owns 2,248,137 shares of the shipping service provider’s stock valued at $674,336,000 after purchasing an additional 578,350 shares in the last quarter. Franklin Resources Inc. raised its holdings in shares of FedEx by 8.6% during the third quarter. Franklin Resources Inc. now owns 3,975,531 shares of the shipping service provider’s stock valued at $1,042,050,000 after purchasing an additional 314,380 shares during the period. World Investment Advisors LLC boosted its position in shares of FedEx by 2,163.7% during the 3rd quarter. World Investment Advisors LLC now owns 192,441 shares of the shipping service provider’s stock worth $52,667,000 after purchasing an additional 183,940 shares in the last quarter. Finally, Ceredex Value Advisors LLC grew its stake in shares of FedEx by 77.8% in the 3rd quarter. Ceredex Value Advisors LLC now owns 368,107 shares of the shipping service provider’s stock valued at $101,022,000 after buying an additional 161,022 shares during the period. 84.47% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Susan C. Schwab sold 3,980 shares of FedEx stock in a transaction dated Tuesday, January 14th. The stock was sold at an average price of $276.45, for a total value of $1,100,271.00. Following the completion of the transaction, the director now directly owns 8,904 shares of the company’s stock, valued at approximately $2,461,510.80. This trade represents a 30.89 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP John W. Dietrich bought 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 7th. The shares were acquired at an average price of $273.98 per share, for a total transaction of $273,980.00. Following the transaction, the executive vice president now owns 9,067 shares in the company, valued at $2,484,176.66. This represents a 12.40 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 8.87% of the stock is owned by insiders.

FedEx Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 3rd. Stockholders of record on Monday, December 9th were given a dividend of $1.38 per share. The ex-dividend date of this dividend was Monday, December 9th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.99%. FedEx’s dividend payout ratio (DPR) is 35.18%.

FedEx Company Profile

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.