FedEx Q1 Preview: Transportation Giant 'Showing Some Signs Of A Turnaround'

Core Viewpoint - FedEx Corporation is expected to show revenue and earnings per share growth in its upcoming first-quarter financial results, despite a recent trend of stock sell-offs following earnings reports [1]. Earnings Estimates - Analysts predict FedEx will report first-quarter revenue of $21.67 billion, an increase from $21.60 billion in the same quarter last year [2]. - Expected earnings per share for the first quarter are $3.62, up from $3.60 in the previous year [2]. - The company has beaten revenue estimates in three consecutive quarters but only in four of the last ten quarters overall [2]. Recent Performance and Guidance - FedEx beat earnings per share estimates in the fourth quarter and has surpassed estimates in six of the last ten quarters [3]. - The company's guidance for first-quarter earnings per share is between $3.40 and $4.00, with revenue guidance ranging from $21.60 billion to $22.03 billion [3]. Analyst Sentiment - Analysts have been reducing their price targets for FedEx ahead of the earnings report, indicating a cautious outlook [4]. - Jay Woods from Freedom Capital Markets noted that FedEx has been a frustrating stock, with shares declining after each of the last four earnings reports [4]. - The implied volatility on FedEx's earnings day is +/- 7.1% [5]. Key Items to Watch - Investors will focus on shipment volumes and the impact of a recent partnership with Amazon on FedEx's shipments [5]. - The expiration of a partnership with the United States Postal Service may also affect the company's performance [6]. - FedEx is targeting $1 billion in cost savings by fiscal 2026, and investors will be keen to see any updates on this goal [6]. Analyst Ratings and Price Targets - Evercore ISI Group downgraded FedEx from Outperform to In-Line, lowering the price target from $249 to $243 [7]. - Bernstein maintained a Market Perform rating but reduced the price target from $249 to $247 [7]. - Bank of America Securities downgraded from Buy to Neutral, lowering the price target from $245 to $240 [7]. - JPMorgan maintained an Overweight rating but lowered the price target from $290 to $285 [7]. - UBS maintained a Buy rating while reducing the price target from $297 to $293 [7]. Stock Performance - FedEx stock is currently up 0.9% to $229.64, with a 52-week trading range of $194.30 to $308.53 [8]. - The stock has declined 16.3% year-to-date in 2025 [8].