FedEx (NYSE: FDX) is set to announce its fiscal Q4 2024 results on June 25, with analysts predicting revenue and earnings to exceed expectations. The company’s cost reduction efforts and stabilization of average daily volumes are expected to drive positive results. Despite its current price around $250, there is potential for FDX stock to see growth post-announcement. Looking at the company’s performance in recent years, the stock has underperformed compared to the S&P 500, with returns of 0% in 2021, -33% in 2022, and 46% in 2023.
In a challenging macroeconomic environment with high oil prices and elevated interest rates, FedEx may face obstacles similar to those experienced in 2021 and 2022. However, there is room for the stock to grow based on valuation estimates, with a projected value of $294 per share. The company’s performance in the previous quarter reflected a 2% decrease in revenue due to lower average volumes, but saw an expansion in adjusted operating margin and a 13% increase in bottom line adjusted earnings.
For the upcoming quarter, FedEx is projected to report revenues of $22.2 billion, a 1% year-over-year increase, with expectations of stable average daily volumes and continued market share gains. Cost-cutting measures should further boost the bottom line, with adjusted earnings estimated to grow by 9% year-over-year. Overall, FedEx is anticipated to have a positive Q4 report, with potential for further growth due to stabilizing volumes and expanding margins, which bodes well for the company’s stock.
While FDX stock appears poised for growth, it is important to compare FedEx’s performance with that of its peers. The company’s peers across various industries can provide valuable insights on key metrics that matter. Investors can explore other comparative data and make informed decisions. Overall, FedEx’s upcoming earnings report is expected to be strong, with potential for further positives in the future based on its performance trends and market dynamics.
