Analysts Warn This 1 Dividend Stock Faces Weak Earnings, High Costs

Core Insights - FedEx Corporation is a global leader in logistics and transportation, operating the world's largest cargo airline and managing a fleet of over 200,000 vehicles and nearly 700 aircraft, handling over 16 million shipments daily [1][2] Financial Performance - FedEx reported strong fiscal Q1 results on September 18, 2025, with adjusted EPS of $3.83, surpassing estimates of $3.66, marking a 6.4% year-over-year increase [5] - Revenue reached $22.2 billion, exceeding forecasts of $21.9 billion, reflecting a 2.8% growth from the prior year, driven by robust U.S. domestic package volume and pricing strength [5] - Operating income rose 7.4% year-over-year to $1.3 billion, supported by $200 million in transformation savings, while net income increased to $824 million from $794 million a year earlier [6] - The company ended the quarter with $6.2 billion in cash and equivalents, maintaining strong liquidity while repurchasing $500 million in shares and declaring a quarterly dividend of $1.45 per share [6] Future Outlook - FedEx reiterated its full-year 2026 guidance, expecting adjusted EPS between $17.20 and $19.00, alongside projected revenue growth of 4% to 6% [7] - The company expressed confidence in continued cost optimization and pricing power while navigating trade headwinds and investing in network transformation programs [7] Stock Performance - FedEx stock has struggled recently, falling 8.1% over the last five days and 0.3% in the past month, with a year-to-date performance down about 20% and a 52-week loss close to 15% [3] - In contrast, the S&P 500 Index has gained roughly 14% year-to-date, indicating significant underperformance by FedEx [3]