FDX Post Earnings Analysis
Fedex shares are trading lower after the company’s latest quarterly earnings results. The freight and logistics giant missed Wall Street’s earnings per share estimate, reporting $3.99 vs the $4.19 estimate, but still up from same time last year of $3.19. Revenue also came in just below expectations at $22.2B vs the street’s $22.4B estimate. Prior to their earnings, the company was trading at their 2023 highs and was inching closer to its all-time highs, so the severe post-earnings sell-off a knee-jerk reaction by investors who fear they might have been overpaying for the stock. Companies at 2023 highs, or all time highs, need to satisfy investors by beating earnings, not just mediocrely meeting them. Either way, the knee-jerk reaction to sell FDX could be an opportunity for investors with a long term vision. Despite the company’s earnings miss, they still kept guidance the same for 2024, citing a turnaround plan to help it reach future targets. Fedex is working on multiyear plans called DRIVE and Network 2.0 to cut costs and increase efficiency and productivity. If their plan is successful, then they’re expected to meet expectations in 2024, which will in turn help their stock’s come back.