Beat the Estimates: FedEx Corp (FDX) Earnings Report Reveals 3Q Adjusted EPS Surpassing Expectations

FedEx Corp on Smartkarma

FedEx Corporation has been receiving attention from analysts on Smartkarma, an independent investment research network. Baptista Research published a report titled “FedEx Corporation: The Road to Recovery – How They’re Overcoming Challenges!” which discussed the company’s recent disappointing results. However, the report also highlighted a 17% improvement in adjusted operating income and a 110 basis points expansion in adjusted margin compared to the previous year. The Ground segment, in particular, showed impressive performance with a 57% increase in adjusted operating income and a remarkable 370 basis points expansion in adjusted margin.

Another analyst, Mohshin Aziz, also shared their insights on FedEx Corporation through a report titled “FedEx (FDX US, BUY, TP:$299): 2QFY24 Will Shed Light on E-Commerce Resurgence“. Aziz believes that FedEx’s cost reduction efforts have been successful and a boost in e-commerce in Asia Pacific could lead to higher earnings. However, they recommend giving FedEx a miss as there is too little upside for the risk. The report also includes a target price of US$299 based on 15x CY2024 PE.

Baptista Research also published a report titled “FedEx Corporation: Navigating Through Demand Fluctuations!” which discussed the company’s mixed results for the previous quarter. While revenues were below the analyst consensus, the report noted that the company’s transformation efforts, particularly the DRIVE initiative, are already reaping rewards. This has resulted in increased revenue in the Ground segment due to higher yields and exceptional operational performance, as well as substantial cost reductions achieved across the network.

A look at FedEx Corp Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

The long-term outlook for FedEx Corp is looking positive, according to the Smartkarma Smart Scores. The company has received a score of 3 for both value and dividend, indicating that it is a solid investment with potential for growth and returns for shareholders. Additionally, FedEx Corp has scored a 4 in growth, suggesting that the company is expected to see significant growth in the future. However, the company has received a score of 2 for both resilience and momentum, which may indicate some potential challenges in the short term.

FedEx Corp is a global leader in package and freight delivery, operating in numerous countries and territories through its integrated network. The company offers a wide range of services, including express delivery, ground small-parcel delivery, less-than-truckload freight delivery, and supply chain management. They also provide customs brokerage services and electronic commerce solutions, making them a one-stop-shop for businesses looking for efficient and reliable delivery services. With a strong global presence and a positive outlook, FedEx Corp is poised for continued success in the long term.

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