Jill Malandrino Details What To Know Ahead Of FedEx Earnings

Jill Malandrino was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

TheStreet's Options Profits Product Development Manager Jill Malandrino argued that FedEx Corporation FDX was a "bellwether benchmark" that investors would look to gauge the health of the U.S. and global economy when it reports earnings Wednesday morning.

According to Estimize, analysts are expecting EPS of $2.76 and revenues of $12.316 billion for Q4 2015.

Malandrino said that while she does like to see companies outperform when the market pulls back - as FedEx has done recently - she is a bit "concerned" that the stock has run up as much as it has. She speculated that even a good report could see profit-taking, but reminded listeners that the stock would likely continue to perform well on a long-term basis. For the stock to move immediately higher, it would "really" have to be a great beat or outstanding guidance, she said.

While she did point to FedEx's earnings as a proxy for the global economy - particularly in transportation, ecommerce and business services - Malandrino also argued that this particular earnings report will provide insight into the company's restructuring. FedEx is retiring its older fleet to make way for more fuel-efficient vehicles, a move that will help save costs and expand margins.

The market, Malandrino said, likes to see companies "right-size," pointing to the fact that Goldman Sachs and Credit Suisse have recently reiterated their Outperform ratings and price targets of $205 and $206, respectively. Malandrino is optimistic long-term.

Year-to-date, FedEx has more than doubled the S&P 500's performance, gaining 4.7 percent compared with a 1.8 percent increase in the index. The company is heading into earnings trading roughly $3 below its 52-week high, which is at $185.19.