For investors, FedEx’s fiscal fourth-quarter earnings, which are expected to be released after the close on Thursday, will be important, but its forecast for the next year will be even more important, as it will give a glimpse into how a company that is constantly monitoring the flow of goods sees the business climate.
For a total of $24.5 billion in revenues, Wall Street expects EPS of $6.88. Revenue increased from $5.01 per share and $22.6 billion in the previous quarter to the fourth quarter of the fiscal year 2021
Management at FedEx projected full-year profits per share to be in the range of $20.50 to $21.50 at the start of the fiscal year 2022. Full-year profits are expected to come in at about $20.50, which is at the lower half of the range management had forecasted.
For the fiscal year 2023, analysts expect the company will earn $22.21. That provides a framework for evaluating any management advice.
Following earnings, the options market predicts an 8% movement in the stock price. Shares have fluctuated between 5% and 7% after each of the company’s last four quarterly reports.
The findings will be discussed on a conference call at 5 p.m. Eastern time today.
FedEx stock was down approximately 11% as of Thursday’s trade, better than the 21% and 16% declines in the S&P 500SPX –0.13%.
Shares are fetching a price that is about ten times the expected profits for the fiscal year 2023.
About 73% of FedEx stock analysts rank the shares as Buy. The S&P 500’s average Buy-rating ratio is 58 percent. The average analyst price objective for the stock is $290, which is 27% higher than where it is now trading.
