FedEx Corporation FDX reported its fourth-quarter financial results after the market closed on Tuesday. EPS of $3.30 and revenue of $13 billion beat estimates by $0.02 and $220 million, respectively. However, the mid-point of its fiscal 2017 adjusted earnings outlook of $11.75 to $12.25 per share fell short of consensus, which stands at $12.17 per share.
Following such mixed results, Citi analysts led by Christian Wetherbee reiterated a Buy rating and $200 price target on the stock, while sharing their take on the earnings call.
“The lack of detail was somewhat disappointing, as the transaction was announced more than a year ago, but herein lies some value,” Citi’s note continued. Taking management commentary into account, the experts now anticipate consensus earnings will be trimmed, “creating an achievable set up fundamentally for the segments and TNT expectations are essentially zero.”
In fact, the analysts concluded they would not be surprised if the stock experienced some feebleness following the call, but added they could still expect stronger performance “as the narrative shifts toward executing on TNT and beating lower hurdles, all with a tailwind from ecommerce.”
At time of writing, FedEx was down 4.07 percent on the day, trading at $157.32.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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