FedEx Corporation (NYSE:FDX)
In anticipation of FedEx Corporation’s (NYSE:FDX) next earnings report, Morgan Stanley is the most recent corporation to become more circumspect.
Despite the improved comparables for the quarter, analyst Ravi Shanker and team feel FDX’s FY23 could be off to a harder start than anticipated. They issued a warning that the company’s full-year forecast may not be realized due to a dimming macro outlook, the acceleration of the post-pandemic mean reversion, and ongoing cost headwinds.
According to Morgan Stanley’s analysis of FDX, consensus figures may decline in the final print since it is anticipated that FDX will steer cautiously in order to reflect their more pessimistic economic projections.
FedEx (NYSE:FDX) currently has an Equal-weight rating from the company with a $250 price goal.
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Spencer Patton, a controversial delivery contractor, has been cut off from FedEx Ground, but an organization he created may still exert pressure on the firm to change its business practices.
Prior to Ground Logistics terminating its contracts on August 26, Patton, the president and founder of Patton Logistics, fought for more benevolent terms. However, he also suggested more significant changes to the way the company interacts with the independent companies it hires for delivery, pickup, and linehaul services. This includes giving Ground’s contractors advantages akin to those given to franchisees.
Shares of FDX are down 23% YTD and more than 13% over the past six weeks. Early in Wednesday’s session, FDX fell below $200 for the first time since mid-May.
In the coming weeks, FedEx (NYSE:FDX) is anticipated to release FQ1 earnings. The last time it was in the earnings confessional, the shipping giant failed consensus estimates on both of its report’s lines, marking the first double miss in more than two years.
Featured Image- Megapixl @Meunierd
Author Jowi Kwasu 
