FedEx CorporationFedEx reports Q4 results; guidance and prior earnings are positive, but hawkish Fed signals and Amazon competition create uncertainty.
FedEx reports its fiscal fourth-quarter results on Tuesday, June 23, after the market closes, marking its first update since the Federal Reserve signaled a possible rate hike and the company completed the spin-off of its less-than-truckload freight business into a separate public company. The stock has surged this year but pulled back last week amid hawkish Fed signals and Amazon's entry into the LTL freight market. In its fiscal third quarter, revenue rose 8% to $24 billion and adjusted earnings per share climbed 16% to $5.25, driven by business-to-business shipping and cost cuts from the Network 2.0 program. For the fourth quarter, FedEx guided for adjusted earnings per share of about $5.80, which would be its strongest quarter of the year. At about $326, the stock trades at roughly 17 times the midpoint of management's adjusted earnings guidance, with a dividend yield of about 1.5% after a recent 5% increase to an annualized $4.88.
FedEx CorporationFedEx reports Q4 results; guidance and prior earnings are positive, but hawkish Fed signals and Amazon competition create uncertainty.
FedEx Freight Holding Company, Inc.FedEx Freight was spun off as a separate public company, which is a positive capital event for the new entity.
Amazon.com IncAmazon's entry into the LTL freight market is mentioned as a competitive threat to FedEx, but Amazon itself is not the subject.