FedEx Corp. (NYSE: FDX) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates call for $3.28 in earnings per share (EPS) on $12.78 billion in revenue. In the same period of last year, the company posted EPS of $2.66 and $12.11 billion in revenue.

At the end of the previous quarter, Merrill Lynch commented that the third-quarter results improved the outlook for fiscal fourth-quarter margin targets. Considering the strong results, its target was for 12% Express operating margins in the fourth quarter (the firm had been at 11.3%), Merrill Lynch increased its fiscal 2016 and fiscal 2017 EPS estimates 4% each.

Credit Suisse also commented on the third quarter, saying part of what tripped up the Ground segment were operational complexities that arose from “extraordinary growth” in non-traditional e-commerce volumes such as “mattresses, canoes, swing sets, and big screen TVs.” FedEx is addressing this issue and the company expects a return to mid-teens Ground margins in the fourth quarter.

Other analysts believe that this company is poised to benefit from strongly online spending going forward.

Apart from this, a few analysts weighed in on FedEx prior to the release of the earnings report:

• Cowen reiterated a Buy rating.
• Morgan Stanley reiterated a Hold rating.
• Oppenheimer reiterated a Buy rating.
• Stifel has a Buy rating with a $178 price target.

So far in 2016, FedEx has outperformed the broad markets, with the stock up 9%. Over the past 52 weeks, the stock is actually down about 8%.

Shares of FedEx were traded up 2.2% at $165.80 on Monday, with a consensus analyst price target of $179.52 and a 52-week trading range of $119.71 to $177.65.

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