These Analysts Slash Their Forecasts On FedEx After Q3 Earnings

Core Insights - FedEx Corp. reported weaker-than-expected earnings for Q3, with earnings per share at $4.51, missing the analyst consensus estimate of $4.54, while quarterly revenue was $22.2 billion, exceeding the estimate of $21.89 billion and up from $21.7 billion year-over-year [1][3] Financial Performance - The company experienced improved profitability despite a challenging operating environment, which included a compressed peak season and severe weather events, as noted by CEO Raj Subramaniam [2] - FedEx is unable to forecast fiscal 2025 mark-to-market retirement plans accounting adjustments, leading to no guidance on earnings per share or effective tax rate for that fiscal year. The revenue outlook for fiscal 2025 is now expected to be flat to slightly down year-over-year, compared to a prior forecast of approximately flat [3] Stock Market Reaction - Following the earnings announcement, FedEx shares fell by 11%, trading at $219.21 [3] Analyst Ratings and Price Targets - Analysts have adjusted their price targets for FedEx post-earnings, with various ratings and target changes: - B of A Securities maintained a Buy rating, lowering the target from $295 to $272 - Stifel maintained a Buy rating, lowering the target from $364 to $354 - Raymond James maintained an Outperform rating, lowering the target from $320 to $290 - Loop Capital downgraded from Hold to Sell, cutting the target from $283 to $221 - BMO Capital maintained Market Perform, lowering the target from $330 to $275 - Stephens & Co. maintained Overweight, lowering the target from $320 to $300 - Wells Fargo maintained Equal-Weight, lowering the target from $275 to $260 [4]