FedEx Leads S&P 500 After Surprise Earnings Growth Shocks Wall Street (2024)

FAQs

Why did FedEx stock go up so much? ›

FedEx plans to repurchase $2.5 billion of its common stock in fiscal 2025. Shares of FedEx soared nearly 16% on Wednesday after the shipping giant beat earnings expectations for its fourth fiscal quarter and as a possible sale of FedEx Freight looms.

FedEx expects fiscal 2025 earnings of about $21 a share. Wall Street projects $20.52 a share. And sales are expected to grow at a “low-to-mid single-digit percent” rate, which is an improvement from recent results. Sales have fallen for two consecutive years.

FedEx reported $87.7 billion in revenue for fiscal 2024, down 2.7% from 2023, on its June 25 earnings call. For its fourth quarter, which ended May 31, FedEx reported a 0.9% year-over-year increase in revenue to $22.1 billion.

FedEx's odds of distress is under 8% at this time. It has tiny probability of undergoing some form of financial crisis in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

FedEx (FDX) Ownership Overview

The ownership structure of FedEx (FDX) stock is a mix of institutional, retail and individual investors. Approximately 73.88% of the company's stock is owned by Institutional Investors, 8.87% is owned by Insiders and 17.25% is owned by Public Companies and Individual Investors.

FedEx has a long history of delivering for shareholders and the company appears to be on the right road. This is a cyclical business, and it could take a few quarters for the stock to really accelerate, but FedEx remains an attractive choice for long-term focused investors.

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Christian Wetherbee's rating is based on a nuanced analysis of FedEx's financial results and strategic directions. The recent financial results for FedEx's F4Q24 were marginally above expectations, which suggests a stable performance but not necessarily a compelling growth trajectory.

Adjusted earnings in the 2025 fiscal year will be $20 to $22 a share, the company said late Tuesday in a statement that also detailed results for fourth quarter. The midpoint topped the $20.85 average of analysts' estimates compiled by Bloomberg.

As of June 2024, FedEx Ground and Express will be united in a single air/ground unit to increase efficiency and save the company billions of dollars annually. While freight services will still operate independently, air, ground, and services divisions will move under a single umbrella. FedEx Corp.

The average price target for FedEx is $301.85. This is based on 15 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $350.00 ,the lowest forecast is $210.00. The average price target represents 17.68% Increase from the current price of $256.51.

Is FedEx going to lay off employees? ›

FedEx anticipates that its latest round of layoffs will cost between $250 million and $375 million through fiscal 2026. Savings from the plan are expected to be between $125 million and $175 million annually starting in fiscal 2027.

It expects its earnings to be in the range of $20 and $22. We forecast the 2025 revenue to be around $90.3 billion, reflecting a 3% y-o-y rise, and adjusted earnings to be $21.00, versus $17.80 in fiscal 2024.

Meanwhile, sales from the company's freight segment dropped around 3% to $2.12 billion. For the rest of the fiscal year, FedEx said it expects revenue to be "pressured by volatile macroeconomic conditions negatively affecting customer demand for our services and constraining yield growth."

How Much Debt Does FedEx Carry? The chart below, which you can click on for greater detail, shows that FedEx had US$19.8b in debt in August 2023; about the same as the year before. However, because it has a cash reserve of US$7.06b, its net debt is less, at about US$12.7b.

Capital spending for fiscal 2024 was $5.2 billion, down 16% from $6.2 billion in fiscal 2023. During fiscal 2024, FedEx returned approximately $3.8 billion to stockholders through the combination of $2.5 billion of stock repurchases and $1.3 billion of dividend payments.

Due to elevated volumes, high demand for capacity, and increased operating costs across our network, FedEx Freight implemented the Demand Surcharge on July 5, 2021, and revised the surcharge on Sept.

FedEx stock price stood at $296.18

According to the latest long-term forecast, FedEx price will hit $350 by the end of 2024 and then $400 by the middle of 2026. FedEx will rise to $450 within the year of 2027, $500 in 2028, $600 in 2029, $700 in 2031 and $800 in 2034.

From a valuation perspective, FDX stock appears to have some room for growth. We estimate FedEx's Valuation to be $294 per share, 18% above its current market price of $250. Our estimate is based on a 14x forward expected adjusted earnings of $21.47 in fiscal 2025.

Historical daily share price chart and data for FedEx since 1978 adjusted for splits and dividends. The latest closing stock price for FedEx as of June 25, 2024 is 256.38. The all-time high FedEx stock closing price was 297.21 on May 27, 2021.