What Analysts Think of FedEx’s Stock Ahead of Earnings | Global News Avenue

FedEx (FDX) will report its fiscal second-quarter earnings after the close on Thursday, and analysts expect another quarter of modest revenue declines before the shipping giant returns to growth.

Analysts are mostly bullish on FedEx stock, with 11 of the 15 analysts tracked by Visible Alpha giving it a “buy” rating, another three giving it a “hold” rating, and one giving it a “sell” rating . Their average price target is about $308, which implies about 9% upside from Friday’s closing price of $283.42. The stock has gained about 12% so far in 2024.

FedEx expects second-quarter revenue of $22.14 billion, slightly lower than last year’s $22.17 billion. However, net profit is expected to rise nearly 3% year-on-year to $925.1 million as the shipping line struggles to achieve a net profit. cost cutting.

Following the second quarter, forecasts compiled by Visible Alpha suggest FedEx may return to year-over-year revenue growth in the coming quarters.

‘One of the most important quarters in years’

As part of the restructuring announced last year, FedEx said it will Bringing FedEx Ground, Services and Express under the same corporate umbrella, FedEx Freight remains a separate business.

After the restructuring is completed, FedEx said in its fourth-quarter report in June that it was “evaluating the role of FedEx Freight and the structure of our portfolio” and expected to complete the evaluation by the end of 2024. Transcript provided by AlphaSense.

Citi analysts wrote on Friday that the upcoming earnings report “could be one of the most important quarters for FedEx in years” and suggested that spinning off the freight business into a separate company could “unlock value,” but probably not for FedEx best choice. long.