Shares of FedEx Corp.
FDX,
rose 0.4% toward a more-than two-year high in afternoon trading Tuesday, ahead of the package-delivery company’s fiscal second-quarter results due out after the closing bell. The company has beat profit expectations the past four quarters, even as it has missed revenue forecasts the past six quarters. The stock’s reactions to earnings have been mixed over the past 10 quarters, as it has gained five times, by an average of 5.5%, and lost five times, by an average of 8.2%. The FactSet consensus for adjusted earnings per share is $4.19, up from $3.18 a year ago, and for revenue to fall 1.9% to $22.36 billion. The EPS consensus has increased from $3.92 at the end of the first quarter, which ended Aug. 31, while the revenue consensus inched lower from $22.39 billion. Evercore ISI analyst Jonathan Chappell reiterated his outperform rating on FedEx stock but raised his price target to $317 from $291, as he expects a fifth straight earnings beat and a raised outlook. He lifted his fiscal 2024 EPS estimate to $18.63 from $18.16, which compares with FedEx’s guidance range of $17.00 to $18.50. The stock, which is headed toward the highest close since July 26, 2021, has run up 63.4% year to date, while shares of rival United Parcel Service Inc.
UPS,
have dropped 7% and the S&P 500
SPX,
has gained 24%.
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