HomeInvesting NewsFollowing Q1 Earnings, FDX Stock Fell: Lackluster Performance Has Everyone Waiting for...

Following Q1 Earnings, FDX Stock Fell: Lackluster Performance Has Everyone Waiting for a Response From Management.

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Following the close of trading on Thursday, September 22nd, FDX stock will reveal its financial results for the first quarter.

The average analyst forecast calls for earnings of $2.80 per share (down 41.9% year-over-year) on revenues of $23.78 billion (+1.3%).

In the past two years, FedEx (NYSE:FDX) has outperformed expectations for earnings per share (EPS) 50% of the time and sales 75% of the time.

There have been thirteen cuts to earnings per share forecasts during the past three months. The revenue forecast has been lowered seven times.

After reporting preliminary Q1 results considerably below forecasts and withdrawing its FY23 earnings prediction, the package delivery company FDX stock price fell. The markets fell because of worries about global economic growth, which was exacerbated by the warning.

In response to macroeconomic challenges, FedEx (NYSE:FDX) took measures to reduce costs, including reducing employee hours, postponing hiring, and shutting down more than 90 FedEx Office sites.

Analysts were caught off guard by the pessimistic forecast, which resulted in several downgrades. Stifel cautioned that the EBIT shortfall was far worse, suggesting that volume contraction is likely not the complete issue.

Despite “shockingly low” Express margins, J.P. Morgan warned clients to avoid trading in the stock before earnings. Because UPS (NYSE:UPS) had previously reaffirmed its guidance, Citi stated that the results demonstrated company-specific execution challenges.

FDX Stock

FDX stock increased by more than 3% after the company reported its fourth-quarter earnings due to stronger-than-anticipated projections. Analysts were generally optimistic about the findings. However, some remained wary due to ongoing cost pressures and macroeconomic uncertainty.

In preparation for its investor conference, FDX stock established goals for FY25, including a 4-6% YoY increase in revenue and a 10% adj. consolidated operating margin.

Due to its sensitivity to macroeconomic factors, Cavenagh Research, a contributor to SA, advised investors to avoid buying the decline in FDX stock. Meanwhile, Daniel Jones has suggested that the upcoming difficulties may be an excellent opportunity to buy.

With a year-to-date loss of 39.2%, FDX stock has lagged far behind the S&P 500 and the S&P 500 Industrials.

Check out this table that contrasts some major FDX and UPS metrics.

Featured Image-  Megapixl @Aksitaykut

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