Earnings Preview: FedEx Corporation

Jun. 8.12 | About: FedEx Corporation (FDX)

Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services.

FedEx Corporation (NYSE:FDX) is scheduled to report its fourth quarter earnings results on June 19, 2012, before market open.

Technical Overview

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FedEx has a market cap of $27.38 billion and it is currently trading around $86.22 with a 52 week range of $64.07 to $98.66. The stock has gained 3.1% YTD. The following table provides the key financial ratios for FedEx:

Key Ratio Value
Current Ratio 1.59
PEG 0.9
P/E 13.52
Forward P/E 11.67
Profit Margin 4.83%
Return On Assets (ROA) 7.42%
Return On Equity (ROE) 12.95%
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Recent News

  • On June 4, 2012, FedEx declared a quarterly dividend of $0.14 per share, or $0.56 annualized. This is a 7.7% increase from the prior dividend of $0.13.
  • On June 4, 2012, FedEx announced that its decision to permanently retire from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six Boeing MD10-10 aircraft and 17 related engines.
  • On May 29, 2012, FedEx announced that it has signed an agreement to acquire the Brazilian transportation and logistics company, Rapidão Cometa Logística e Transportes S.A., the latest step in FedEx's strategy for profitable growth in Latin America.
  • On May 10, 2012, FedEx Express announced that it has signed an agreement to acquire TATEX, a leading French business-to-business express transportation company.
  • On April 5, 2012, FedEx announced that it signed an agreement to acquire the Polish courier company Opek Sp.z o.o. (Opek), the latest step in its strategy for growth in Europe.

Analyst Guidance and Earnings History

The fourth quarter revenues are expected to be $11.13 billion when compared to $10.55 billion for the same quarter last year. Earnings per share for the fourth quarter are expected to be $1.92 a share, up from $1.75 a share in the year-ago period.

The average price target from analyst for FedEx is $107.04 with average rating is OVERWEIGHT

Out of the last 4 quarters, FedEx has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for FedEx:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FDX over the next 72 hours.