Operating Profits At FedEx (FDX) May Rise 9% Annually
Analysts at Credit Suisse maintain their "neutral" rating on FedEx Corporation (NYSE: FDX). The target price for FDX has been raised from $99 to $100.
FDX has reported its FQ3 2010 EPS above the guidance, estimates and consensus. FedEx has also raised its forecast for FY10 to $3.60-$3.80 from $3.45-$3.75, ahead of the consensus. “Management attributed the 6.9% y/y revenue increase to higher shipment growth, specifically at International Express (volumes +15.9% y/y), and at FedEx Ground (average daily package volume increased 4.6% y/y),” the analysts say.
According to Credit Suisse, ”FDX can generate about $3.1 billion in EBIT in fiscal 2012 (or the equivalent of $6.03/shr), and that the company can grow operating profit 9% annually on a 3-to-5 year view.”
