A Glimpse of FedEx's Earnings Potential

FedEx FDX is gearing up to announce its quarterly earnings on Tuesday, 2025-06-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that FedEx will report an earnings per share (EPS) of $5.89.

The announcement from FedEx is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

In the previous earnings release, the company missed EPS by $0.03, leading to a 6.45% drop in the share price the following trading session.

Here's a look at FedEx's past performance and the resulting price change:

Stock Performance

Shares of FedEx were trading at $224.59 as of June 20. Over the last 52-week period, shares are down 12.24%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on FedEx

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding FedEx.

Analysts have provided FedEx with 9 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $275.78, suggesting a potential 22.0% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of United Parcel Service, Expeditors International and C.H. Robinson Worldwide, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for United Parcel Service, with an average 1-year price target of $117.33, suggesting a potential 48.09% downside.
• Analysts currently favor an Neutral trajectory for Expeditors International, with an average 1-year price target of $109.0, suggesting a potential 51.78% downside.
• Analysts currently favor an Outperform trajectory for C.H. Robinson Worldwide, with an average 1-year price target of $113.29, suggesting a potential 49.88% downside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for United Parcel Service, Expeditors International and C.H. Robinson Worldwide are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

FedEx ranks first in revenue growth among its peers. It has the highest gross profit and return on equity.

About FedEx

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2024, which ended in May, FedEx derived 47% of revenue from its express division, 37% from ground, and 10% from freight, its asset-based less-than-truckload shipping segment. The remainder came from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.

Unraveling the Financial Story of FedEx

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining FedEx's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.94% as of 28 February, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: FedEx's net margin is impressive, surpassing industry averages. With a net margin of 4.1%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): FedEx's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.42%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): FedEx's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.06% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.39.

To track all earnings releases for FedEx visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.