Oppenheimer Sees Slight Q1 Beat For FedEx Corporation

FedEx Corporation FDX is benefiting from a rebounding economic picture and may beat Wall Street's consensus when it posts fiscal first-quarter results Wednesday, an analyst said.

Oppenheimer's Scott Schneeberger boosted his estimates Monday for FedEx's first-quarter sales and earnings to above investors' average expectations, and said the company could also unveil an additional share buyback plan as part of its earnings release.

FedEx hit a rough patch earlier this year when it missed third-quarter earnings expectations and cut its outlook for the remainder of fiscal 2013.

But shares have rebounded 67 percent since hitting a trough in May.

Schneeberger thinks broadly higher sales in e-commerce channels as well as expanding U.S. manufacturing will help grow shipping volume at the company's ground and freight units, while lower jet fuel prices and internal improvements will lead to wider margins at the company's express operation.

Last year, Fedex cut about 3,600 workers through voluntary buyouts and as of May, the company employed 112,000 permanent and 50,000 part-time workers.

Savings from buyouts will be fully in effect for the first quarter, Schneeberger noted.

Wall Street expects the company will post first-quarter earnings of $1.96 cents a share on revenue of $11.48 billion. Schneeberger sees earnings higher by a penny a share, on revenue of $11.49 billion.

Schneeberger reiterated a Buy rating and raised his target on FedEx to $172 a share, from $168.

FedEx closed Monday little changed at $154.04 a share. Its 52-week high is $155.31 a share.