Shipping and logistics company FedEx Corp FDX is set to report second-quarter financial results after market close Tuesday, Dec. 19.
Here's a look at the earnings estimates, what analysts are saying and key items for investors to watch.
Earnings Estimates: FedEx is expected to report second-quarter revenue of $22.405 billion, according to data from Benzinga Pro.
The total would come in shy of the $22.814 billion in revenue reported in the second quarter of the previous year.
The company has missed Street estimates for revenue in six straight quarters.
Analysts estimate FedEx will report second-quarter earnings per share of $4.20, compared to $3.18 in the year-over-year period.
The company has beaten earnings per share estimates in five straight quarters.
Related Link: FedEx Addresses Air Cargo Dip By Encouraging Pilot Opportunities With American Airlines: Report
What Analysts Are Saying: FedEx's second quarter could come in below consensus estimates, according to Morgan Stanley analyst Ravi Shanker.
The analyst, who had an Equal-weight rating and $205 price target, said the company could miss across all its segments, with ground and express hit the hardest.
The analyst's early December note said the continued macroeconomic environment could hurt the company along with seasonality.
Shanker said it would be interesting to see if the company leaves its full-year guidance unchanged for now.
FedEx is a top pick ahead of the second quarter results for Citi analyst Christian Wetherbee.
The analyst, who had a Buy rating and $300 price target, said cost initiatives for the company are progressing and an extra Cyber Week day could benefit in the second quarter.
Wetherbee said it was unclear if FedEx would raise guidance if they beat estimates in the second quarter, given fundamental headwinds in the sector.
Key Items to Watch: The second-quarter earnings results from FedEx come two months after rival United Parcel Service UPS last reported a third-quarter revenue decline of 12.8% year-over-year and missed estimates from analysts.
Earnings per share from UPS beat estimates from analysts.
UPS saw double-digit year-over-year declines for each of domestic, international and supply chain solutions. The company cited "unfavorable macro-economic conditions" in the quarter.
The company also lowered its full-year guidance for revenue.
The quarterly report from FedEx will be closely monitored to see how it compares to UPS and if any market share gains were realized at the rival's expense. A guidance increase from FedEx after UPS's guidance cut could show the difference in the two companies.
Shares of FedEx are up 60% year-to-date in 2023, compared to a 7% decline for UPS shares on the year.
It was recently announced that Amazon.com, Inc AMZN has now passed both FedEx and UPS as the largest U.S. residential parcel delivery company. While FedEx ended its deal with Amazon in 2019, UPS still gets around 11% of its revenue from Amazon.
Any discussion on rivals like Amazon could be an item to watch as the e-commerce giant has overtaken FedEx and UPS domestically but still lags internationally.
With one week to go until Christmas, investors and analysts may be anticipating commentary from FedEx on the current third quarter and how holiday demand and shipping are faring.
FDX Price Action: FedEx shares are down 0.071% to $281.09 on Monday at publication versus a 52-week trading range of $162.61 to $285.53. New 52-week highs were hit earlier in Monday's trading session.
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