What to Expect When FedEx Reports Tuesday

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FedEx Corp. (NYSE: FDX) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus forecast calls for $4.93 per share in earnings and $17.88 billion in revenue. The same period of last year reportedly had $5.91 per share and $17.31 billion.

FedEx has come under pressure from the Chinese government a month ago after freight from telecom company Huawei was not delivered to the correct address. The U.S. government essentially has banned the use of Huawei’s technology by U.S. companies.

Huawei, which the Chinese government controls according to some of its critics, said the ban will cost it $30 billion in revenue a year. Just as FedEx seems to put the problem behind it, another Huawei package handled by the freight company was returned to the sender. The Chinese government’s reaction was the glitch was not a mistake.

According to Reuters, “The package in question was mistakenly returned to the shipper, and we apologize for this operational error.” It had been shipped from China to a U.S. destination. FedEx would not say where.

Excluding Monday’s move, FedEx had underperformed the broad markets, with its stock up only 2.5% year to date. In the past 52 weeks, the stock was actually down 34%.

A few analysts weighed in on FedEx ahead of results:

  • Bernstein has a Buy rating with a $203 price target.
  • Raymond James has an Outperform rating and a $200 target.
  • Cowen has an Outperform rating with a $228 target price.
  • KeyCorp has an Overweight rating with a $190 target price.
  • Credit Suisse’s Outperform rating comes with a $184 target.

Shares of FedEx were down more than 1% at $162.46 on Monday, in a 52-week range of $150.68 to $259.25. The consensus price target is $205.21.


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