Every Rating And Price Target On FedEx Ahead Of Q2 Earnings

FedEx Corporation FDX is scheduled to report its second quarter financial results after Tuesday's close.

Wall Street expects earnings of $2.90 a share on revenue of $14.92 billion versus prior year earnings of $2.58 a share on revenue of $12.50 billion.

FedEx’s earnings have managed to top Street view in the past four quarters and the Street is optimistic that the trend should continue despite higher oil and jet fuel expenses on strong holiday sales.

Forrester predicts shoppers to spend $112 billion online in November and December, an increase of 13 percent from the $99 billion spent in the same period in 2015.

The strong online holiday sales forecast bode well for FedEx, which packages those products. FedEx would benefit as more people are move towards online for their holiday shopping. The earnings results would also suggest how the company has handled additional capacity during holiday orders, especially the company’s Ground segment.

Oppenheimer's Scott Schneeberger recently raised his price target to $210 from $184, saying FedEx is well positioned to achieve its own guidance, which calls for a 10 percent year-over-year volume growth from Black Friday through Christmas Eve.

Investors should focus on the impact of fuel costs on EPS, margins coupled with any update on demand trends and full-year outlook.

Following are the ratings and price target of FedEx:

• JPMorgan – Overweight, Price Target (PT) $233
• BMO Capital – Market Perform, PT $190
• Stifel Nicolaus – Hold, PT $186
• Deutsche Bank – Buy
• Oppenheimer – Outperform, PT $210
• Citigroup – Buy, PT $200
• Barclays – Overweight, PT $205
• Avondale Partners – Market Outperform, PT $182.50