Earnings Alerts

FedEx Corp (FDX) Earnings: Strong EPS Outlook for 2025 with Fourth Quarter Highlights

  • FedEx projects adjusted earnings per share (EPS) for 2025 to be between $20.00 and $22.00, with an estimate of $20.85.
  • Capital expenditure for 2025 is forecasted at $5.2 billion, compared to an estimate of $5.55 billion.
  • Fourth Quarter Results:
    • Adjusted EPS: $5.41, up from $4.94 year-over-year, beating the estimate of $5.34.
    • Revenue: $22.1 billion, an increase of 0.9% year-over-year, matching the estimate of $22.1 billion.
  • Comments:
    • FedEx expects 2025 revenue to grow at a low-to-mid single-digit percentage rate.
    • The company plans to repurchase $2.5 billion worth of shares for fiscal 2025.
    • Fourth quarter results include a noncash impairment charge of $157 million ($0.48 per diluted share) due to the decision to retire 22 Boeing 757-200 aircraft and seven related engines permanently.
  • Analyst Recommendations: 22 buys, 10 holds, 1 sell.

FedEx Corp on Smartkarma

Analysts at Baptista Research have been closely monitoring FedEx Corporation on Smartkarma. In a recent report titled “FedEx Corporation: Will The Implementation Of The One FedEx Strategy Pay Off? – Major Drivers,” the analysts highlighted the company’s steady profit growth despite a decline in revenues. They attributed this success to FedEx’s focus on prompt customer service and transformative initiatives, showcasing efficient management control over internal factors that impact profitability.

In another insightful analysis by Baptista Research, titled “FedEx Corporation: The Road to Recovery – How They’re Overcoming Challenges! – Major Drivers,” the analysts noted that while FedEx faced challenges in meeting revenue and earnings expectations, the company demonstrated resilience. Despite a drop in total revenue, FedEx achieved significant improvements in operating income and margins, particularly in the Ground segment. This positive performance underscores FedEx’s ability to navigate obstacles and enhance profitability in a competitive market environment.


A look at FedEx Corp Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE3.0

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

Based on the Smartkarma Smart Scores, FedEx Corp seems to have a promising long-term outlook. The company scored a 4 in Growth, indicating a positive trajectory for expanding its business operations over time. With a score of 3 in both Value and Momentum, FedEx demonstrates a balanced approach in terms of investment value and market performance. These scores suggest that FedEx may present opportunities for investors looking for consistent growth potential.

However, the company received a lower score of 2 in Resilience, highlighting potential vulnerabilities in adverse economic conditions. Despite this, the balanced scores across different factors indicate a solid foundation for FedEx’s future prospects. As a key player in global package delivery and logistics services, FedEx Corp‘s integrated network and range of services position it well for continued growth and market presence in the long run.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars