FedEx(US:FDX) ZACKS·2025-06-19 14:36Core Viewpoint - FedEx Corporation (FDX) is expected to report its fourth-quarter fiscal 2025 results on June 24, 2025, with earnings estimated at $5.94 per share, reflecting a 9.8% increase year-over-year, while revenues are projected at $21.7 billion, indicating a 1.9% decline from the previous year [1][2][8]. Earnings Performance - The Zacks Consensus Estimate for FDX's fourth-quarter earnings has been revised downward by 1.5% in the past 60 days [2]. - FDX has a mixed earnings surprise history, with an average surprise of -5.79% across recent quarters [3][4]. Revenue and Demand Factors - Average daily shipments are expected to be negatively impacted by weak demand, adverse weather conditions, and recession fears due to tariff-related tensions [5]. - The Express unit, FDX's largest segment, is projected to see a revenue decline of 3.2% compared to the fourth quarter of fiscal 2024 [6][8]. Cost Management Initiatives - Cost-reduction initiatives under the DRIVE program are anticipated to lower salary and operating expenses by 2.1% and 4.4%, respectively, compared to the previous year [7][8]. - The DRIVE program aims for $4 billion in cost savings by fiscal 2025 through improved efficiencies and technology-focused consolidation [16]. Stock Performance and Valuation - FDX shares have declined 17.1% in the fourth quarter of fiscal 2025, slightly underperforming the Zacks Transportation—Air Freight and Cargo industry's decline of 16.9% [11]. - FDX is trading at a discount based on forward 12-month Price/Sales (P/S) compared to the industry average and UPS, with a Value Score of B [13]. Shareholder Returns - In June 2025, FedEx raised its quarterly dividend by 5.1% to $1.45 per share, indicating a commitment to rewarding shareholders despite current challenges [17]. Long-term Outlook - The company has a long-term earnings growth rate of 10.7%, which is higher than the industry's 9.1%, suggesting strong potential despite current market uncertainties [18].