What to Watch For in FedEx’s Q1 Report

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FedEx Corp. (NYSE: FDX) is set to release its quarterly results after the markets close on Monday. Thomson Reuters consensus estimates are calling for $3.82 in earnings per share (EPS) and $16.88 billion in revenue. The same period of last year reportedly had $2.51 in EPS and $15.3 billion in revenue.

Fall is here, and with that comes the anticipation of the holiday season. That is also the busy season for companies like FedEx and UPS and usually requires more employees to deal with the surge of deliveries seen this time of year. FedEx already has announced that it will hire 55,000 seasonal works to help get packages delivered this year.

In its most recent quarter, the company ordered 12 Boeing 777F aircraft and 12 Boeing 767F aircraft as the next phase of the company’s ongoing fleet modernization program. The 777Fs will be delivered between fiscal 2021 and 2025. The 767Fs will be delivered between fiscal 2020 and 2022.

Even before this, the company has been looking to optimize and upgrade its fleet. Earlier this year, FedEx placed a reservation for 20 Tesla semi trucks. FedEx is the latest in a string of reservations and orders for the all-electric semi that is scheduled to go into production next year.

Overall FedEx has outperformed the broad markets, with its stock up about 19% in the past 52 weeks. In just 2018 alone, the stock is up only 2%.

A few analysts weighed in on FedEx ahead of the report:

  • UBS has a Neutral rating with a $256 price target.
  • Loop Capital has a Buy rating with a $310 price target.
  • Morgan Stanley has an Equal Weight rating and a $245 target.
  • Credit Suisse has an Outperform rating with a $315 price target.
  • Oppenheimer has an Outperform rating and a $288 price target.

Shares of FedEx were last seen trading at $255.88, with a consensus analyst price target of $286.24 and a 52-week range of $214.11 to $274.66.