Associate Professor in Finance and Corporate Governance at Brunel University London. I am also a CFA charterholder. In addition, I hold a PhD in Finance from University of Durham, U.K. I have more than 5 years of investing experience in the Indian and US equities with a medium to long-term horizon. I also actively research on Behavioural Finance, Corporate Governance, Activist Hedge Funds and M&A and have published in top-ranked peer-reviewed journals. I also currently produce and host a weekly investing po ...

On Sept. 19, 2024, FedEx Corporation (FDX) posted disastrous first-quarter fiscal 2025 (ended Aug 31, 2024) results, reporting lower-than-expected earnings per share and revenues. The transportation heavyweight also lowered its fiscal 2025 earnings per share outlook, highlighting the weak demand scenario.Brief Recap of FDX’s Q1 Performance & FY25 ViewQuarterly earnings per share (excluding 39 cents from non-recurring items) of $3.60 missed the Zacks Consensus Estimate of $4.82 and declined 20.8% year over y ...

Core Viewpoint - FedEx Corporation reported disappointing earnings, missing analyst expectations significantly, leading to a notable drop in stock price despite some resilience in the market following the report [1][2]. Financial Performance - FedEx's earnings were 24% lower than consensus estimates, and revenue declined year-over-year [1]. - The company's forward guidance was also weak, with management lowering the expected revenue growth rate to a "low single-digit percentage rate" from a previously anticipated low-to-mid single-digit percentage increase [1]. Market Reaction - Following the earnings report, FedEx shares experienced a significant drop, shedding 15% from their pre-earnings high, marking one of the worst days in the stock's recent history [1]. - Despite the initial negative reaction, FedEx shares showed resilience by closing up the day after the report, indicating that the market may have already digested the disappointing news [2]. Analyst Sentiment - Several analysts, including those from Robert W. Baird and TD Cowen, maintained their Outperform and Buy ratings on FedEx shares, while some, like Bernstein Bank, even raised their price targets [4][5]. - Bernstein Bank's new price target of $337 and JPMorgan Chase & Co.'s target of $350 suggest potential gains of around 35% in the coming weeks [5]. Technical Analysis - FedEx's stock is considered extremely oversold, with its relative strength index (RSI) dipping below 30, indicating a potential for a quick rebound if shares can consolidate above $255 [6][8]. - Analysts believe that the significant miss in earnings serves as a reminder of the sensitivity of parts of the business to demand fluctuations, but they still see upside potential, especially with the possibility of spinning off underperforming operations [6].

Sundry Photography Last Thursday night, September 19, ’24, FedEx reported their fiscal Q1 ’25 earnings release, and needless to say, they missed on just about every major metric and lowered guidance as well. Here’s how the results compared to ...

Economic Overview - The Federal Reserve has recently cut interest rates by 50 basis points, with expectations for more cuts in the future, creating a potential economic tailwind [4][5] - However, the lingering effects of a historically aggressive rate-hiking campaign continue to exert economic tightness, which may take months to alleviate [2][3] Company Performance - FedEx reported disappointing earnings, missing quarterly expectations and issuing cautious guidance, indicating a challenging business environment [4][5] - The CEO of FedEx noted that there is no expectation for a significant recovery in the industrial environment for the remainder of the calendar year, highlighting the weakness in the current economic conditions [4] Market Reactions - Following the Fed's rate cut, long-term bond yields unexpectedly rose, contrary to the typical expectation of falling yields in response to rate cuts [5][6] - This rise in yields suggests that Wall Street may be disappointed with the Fed's future outlook, indicating concerns about the central bank's ability to prevent further economic pain [6][7] Economic Indicators - Recent labor market data shows resilience, with jobless claims falling to 219,000, lower than economists' expectations [8] - Retail sales also increased in August, suggesting that consumers are still willing to spend despite previous inflation and higher interest rates [8] Diverging Economic Experiences - There is a growing divide in economic experiences, with a significant portion of Americans feeling they are in a recession while wealthier individuals benefit from rising asset values [10][11] - Surveys indicate that 66.2% of Americans feel they are living paycheck to paycheck, highlighting the struggles of lower-income groups [11] Stock Market Dynamics - The S&P 500 has seen a 52% increase over the last two years, but many companies serving lower-income consumers have experienced significant declines in stock value [12] - Examples include Dollar General down 63% and PayPal down 16%, indicating a potential "tale of two markets" where different segments of the market perform variably [12][13] Investment Outlook - Both bullish and bearish perspectives are valid in the current market, suggesting a complex investment landscape where different sectors may perform differently [18] - The need for investors to focus on specific stocks rather than broad market indices is emphasized, as individual stock performance can vary widely [15][18]

Core Viewpoint - FedEx's recent quarterly results disappointed investors, leading to a significant drop in share prices, and the outlook for both FedEx and its competitor UPS appears bearish [1][12]. FedEx Quarterly Results - FedEx reported earnings per share (EPS) that fell short of the Zacks Consensus estimate by 25%, with sales of $21.6 billion, which was 2% lower than expected [2]. - Year-over-year, EPS decreased by 20%, while sales saw a marginal decline of 0.4% compared to the same period last year [2]. - The company narrowed its fiscal year 2025 earnings and sales outlook, with total sales expectations of $89.9 billion, reflecting a 4% decrease from the previous year and suggesting a 2.6% growth year-over-year [4]. Management Commentary - The CEO of FedEx emphasized the company's focus on transforming its network, improving efficiency, and reducing costs while remaining confident in future value-creation opportunities [4]. Earnings Expectations - Earnings expectations for FedEx have been revised lower, with a forecast of 15% EPS growth relative to last year, indicating a negative trend that may hinder stock performance [6]. - The stock has experienced significant volatility following quarterly releases over the past two years, with the recent drop being consistent with this pattern [6]. Economic Context - Despite signs of moderation at the consumer level, the overall economy has shown resilience, suggesting that FedEx's results may not accurately reflect broader economic trends [8]. Comparison with UPS - United Parcel Service (UPS), a key competitor, has also faced negative earnings outlooks, with its stock currently rated Zacks Rank 4 (Sell), indicating potential near-term share pressure [9]. - UPS's upcoming quarterly results are expected to show stagnant sales expectations, with EPS revisions down 20% over recent months [9]. Overall Market Outlook - The outlook for both FedEx and UPS appears bearish, with investors advised to wait for a more constructive earnings outlook before considering investments in either stock [12].

Shares of FedEx Co. NYSE: FDX have recently sold off by as much as 18% from their recent highs to trade at a much lower 81% of their 52-week high. As Wall Street defines a bear market as a 20% or more selloff from recent highs, FedEx is now in an official bear market, causing most to stay away from the company and others to watch it all the more.As this stock is part of the broader transportation sector, some are anxious about the selloff implications for the consumer discretionary sector since FedEx takes ...

The FedEx (FDX) disappointment likely has some company-specific aspects, but it is reasonable to see this report as providing a read-through for the broader economy that has shown signs of moderation lately. In fact, these signs of macroeconomic softness prompted the U.S. Fed to come out with a bigger interest rate than many in the market expected just a few weeks ago.FedEx missed on the top- and bottom-lines and guided lower, with several analysts covering the stock skeptical of the company’s ability to me ...

Key TakeawaysThe S&P 500 slipped 0.2% on Friday, Sept. 20, receding from the record high it printed after this week's interest-rate cut by the Federal Reserve.FedEx shares dropped after the package delivery giant missed quarterly estimates and reduced its full-year guidance, citing soft demand.Constellation Energy said it will restart operations at a shuttered nuclear plant to provide clean energy for Microsoft data centers, and shares of the utility soared. Major U.S. equities indexes were mixed on the fin ...

FedEx Corporation (FDX) reported disappointing first-quarter fiscal 2025 results wherein both earnings and revenues lagged the Zacks Consensus Estimate. Quarterly earnings per share (EPS) (excluding 39 cents from non-recurring items) of $3.60 missed the Zacks Consensus Estimate of $4.82 and declined 20.8% year over year. Revenues of $21.6 billion fell short of the Zacks Consensus Estimate of $22.1 billion and fell 0.5% from the year-ago fiscal quarter’s reported figure.Quarterly results were unfavorably imp ...