FedEx earnings miss: ‘this doesn’t change my view, I still like it’


FedEx Corporation (NYSE: FDX) stock was undecided in extended trading after the logistics company reported Q3 earnings that came in shy of Street estimates.

Notable figures in FedEx Q3 earnings report

Net income printed at $1.10 billion versus the year-ago figure of $892 million.
Per-share earnings stood at $4.20, an increase from last year’s $3.30.
Adjusted earnings came in at $4.59, as per the earnings press release.

Revenue jumped 10% to $23.6 billion in the fiscal third quarter.
FactSet consensus was for $4.65 of adjusted EPS on $23.41 billion in revenue.

Future outlook and shareholder’s remarks

For the full year, FedEx left its forecast unchanged at $20.50 a share to $21.50 a share in earnings. In comparison, analysts were at $20.59 of EPS.

The outlook assumes current fuel prices, no new restrictions due to the pandemic, and no further adverse geopolitical developments. Commenting on the earnings report, Short Hills Capital’s Steve Weiss said on CNBC’s “Closing Bell”:

This doesn’t really change my view. FedEx is on the front-end of online commerce and industrial commerce. You’ll see more price increases. I still like it at 10 times earnings. It’s what I expected.

FedEx announced a $5.0 billion stock repurchase programme in December, with $1.50 billion of it to be executed at an accelerated pace.

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