FedEx (NYSE:FDX) Updates FY25 Earnings Guidance

FedEx (NYSE:FDX) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $20.00-22.00 for the period, compared to the consensus earnings per share estimate of $20.92. The company issued revenue guidance of low-to-mid single-digit increase, compared to the consensus revenue estimate of $90.47 billion. FedEx also updated its FY 2025 guidance to 20.000-22.000 EPS.

FedEx Trading Up 15.5 %

Shares of FDX stock opened at $296.19 on Thursday. The company has a quick ratio of 1.26, a current ratio of 1.31 and a debt-to-equity ratio of 0.76. The business has a 50-day moving average price of $256.13 and a two-hundred day moving average price of $255.72. FedEx has a 12-month low of $224.69 and a 12-month high of $296.86. The firm has a market cap of $72.89 billion, a P/E ratio of 17.19, a price-to-earnings-growth ratio of 0.93 and a beta of 1.16.

FedEx (NYSE:FDX) last issued its quarterly earnings results on Tuesday, June 25th. The shipping service provider reported $5.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.34 by $0.07. The firm had revenue of $22.11 billion during the quarter, compared to analyst estimates of $22.04 billion. FedEx had a return on equity of 16.86% and a net margin of 4.94%. The company’s revenue was up .8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.94 earnings per share. Equities analysts anticipate that FedEx will post 20.26 EPS for the current fiscal year.

FedEx Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 9th. Stockholders of record on Monday, June 24th will be issued a $1.38 dividend. The ex-dividend date of this dividend is Monday, June 24th. This represents a $5.52 annualized dividend and a dividend yield of 1.86%. This is an increase from FedEx’s previous quarterly dividend of $1.26. FedEx’s payout ratio is currently 32.04%.

FedEx declared that its board has approved a stock buyback program on Thursday, March 21st that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the shipping service provider to buy up to 7.6% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Stephens reiterated an overweight rating and issued a $325.00 price objective on shares of FedEx in a report on Wednesday. Stifel Nicolaus restated a buy rating and set a $327.00 price target (up previously from $303.00) on shares of FedEx in a report on Wednesday. Jefferies Financial Group boosted their price target on FedEx from $265.00 to $300.00 and gave the company a hold rating in a report on Friday, March 22nd. UBS Group reduced their price target on FedEx from $340.00 to $333.00 and set a buy rating on the stock in a report on Tuesday, May 21st. Finally, Barclays boosted their price target on FedEx from $310.00 to $350.00 and gave the company an overweight rating in a report on Friday, March 22nd. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and eighteen have issued a buy rating to the stock. According to data from MarketBeat.com, FedEx has an average rating of Moderate Buy and an average price target of $313.09.

Insider Buying and Selling at FedEx

In other FedEx news, CEO Richard W. Smith sold 1,325 shares of the business’s stock in a transaction on Thursday, April 4th. The shares were sold at an average price of $278.24, for a total transaction of $368,668.00. Following the completion of the sale, the chief executive officer now directly owns 84,614 shares in the company, valued at approximately $23,542,999.36. The sale was disclosed in a document filed with the SEC, which is available through this link. In related news, CEO Richard W. Smith sold 1,325 shares of the firm’s stock in a transaction on Thursday, April 4th. The stock was sold at an average price of $278.24, for a total value of $368,668.00. Following the transaction, the chief executive officer now directly owns 84,614 shares of the company’s stock, valued at approximately $23,542,999.36. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Tracy B. Brightman sold 2,550 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was sold at an average price of $275.69, for a total value of $703,009.50. Following the completion of the transaction, the executive vice president now directly owns 6,294 shares in the company, valued at $1,735,192.86. The disclosure for this sale can be found here. In the last ninety days, insiders sold 117,275 shares of company stock worth $32,177,298. Insiders own 8.73% of the company’s stock.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.