Shares of FedEx Corp FDX tanked climbing in early trading on Friday, after the company reported downbeat results for its fiscal first quarter.Here are some key analyst takeaways.BMO Capital Markets analyst Fadi Chamoun reiterated a Market Perform rating, while reducing the price target from $325 to $300.Stifel analyst Bruce Chan maintained a Buy rating, while cutting the price target from $327 to $321.Goldman Sachs analyst Jordan Alliger reaffirmed a Buy rating, while reducing the price target from $332 to ...

A weak quarterly report shows the logistics giant's turnaround efforts will take time to show results.FedEx (FDX -15.09%) reported weaker-than-expected quarterly results after the closing bell Thursday, and lowered its profit outlook for the fiscal year.Investors Friday don't appear interested in going along for the ride -- they've sent FedEx shares down by more than 14% as of 10:45 a.m. ET.Challenging timesIt has been a difficult few years for transportation companies. Rising interest rates and fears about ...

FedEx TodayFDXFedEx$256.00 -44.39 (-14.78%) 52-Week Range$224.69▼$313.84Dividend Yield2.16%P/E Ratio14.86Price Target$314.58Add to WatchlistFedEx Corporation NYSE: FDX is a solid business, but its latest results give another reason to fear that a recession is near. The company underperformed in all metrics, contracting versus an expectation to grow and reducing guidance in what may be the first of several reductions this year. The FedEx news sent ripples of fear through the entire transportation sector, dri ...

In my first article on FedEx Corporation (NYSE: FDX ) 11 months ago, which was, in fact, my first-ever article on Seeking Alpha, my thesis was that the stock wasn't a viable long-term investment because, at the time, earnings growth estimates of 15% were farI have been a keen student of the markets for several years now. I love studying how companies grow over time, what value they deliver to their stakeholders, and projecting long-term value as an investment opportunity. I work as a content professional fo ...

Shares of FedEx tumbled overnight following a disappointing earnings report and forecast. (Photo by ... [+] Ben Jared/PGA TOUR)PGA TOURKey Takeaways Fed's Aggressive Half-Point Cut Signals Caution Amid Economic Uncertainty Stock Market Rallies, But Global Slowdown Concerns Still Loom Large Commodities Like Oil And Copper Drop, Raising Global Economic WorriesOne day after Jay Powell and the Federal Reserve cut interest rates by a half of percentage point, stocks partied, to quote Prince, "like it's 1999." Th ...

U.S. stock futures were lower this morning, with the Nasdaq futures falling over 80 points on Friday.Shares of FedEx Corporation FDX fell sharply in today's pre-market trading after the company reported weaker-than-expected results for the first quarter of fiscal 2025 and lowered its full-year guidance.FedEx reported first-quarter revenue of $21.6 billion, missing analyst estimates of $21.955 billion, according to Benzinga Pro. The company reported first-quarter adjusted earnings of $3.60 per share, missing ...

FedEx truck is seen in New York City, United States on July 16, 2024. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesFedEx stock (NYSE: FDX) saw a 13% fall in after-market hours on Thursday, September 19, after it reported Q1’25 results (fiscal ends in May) far worse than the street estimates. FDX stock is up 7% year-to-date, compared to -15% returns for its peer – UPS stock. FedEx reported revenue of $21.6 billion and adjusted earnings of $3.60 per share, well below our ...

Just days after American TV personality Jim Cramer praised FedEx Corporation (NYSE: FDX) as a “great stock to own,” the company’s shares took a nosedive, giving, once again, fuel to his critics who believe CNBC’s ‘Mad Money’ host is perpetually in the wrong.Indeed, during an episode of his show on September 18, Cramer highlighted FedEx as one of the companies doing better than Wall Street realized, especially amid (now proven justified) expectations that the United States Federal Reserve would start cutting ...

Financial Data and Key Metrics - Q1 revenue declined due to weaker-than-expected demand, particularly in the U.S. domestic package market, with a mix shift toward lower-yielding services [6] - Adjusted operating profit declined by $382 million year-over-year, driven by soft revenue trends and one fewer operating day, partially offset by $390 million in DRIVE-related savings [27][28] - Federal Express segment saw a $337 million decline in adjusted operating profit, with $150 million due to one fewer operating day and $187 million from revenue softness and deferred service mix [29] - FedEx Freight operating profit declined by $43 million, with nearly half due to one fewer operating day and lower weight per shipment [30] - Full-year adjusted EPS outlook narrowed to $20-$21, reflecting a challenging demand environment and lower revenue growth expectations [8][30] Business Line Performance - Federal Express revenue declined 1% year-over-year, driven by one fewer operating day and a mix shift toward deferred services, partially offset by higher international export package volume [19] - FedEx Freight revenue declined 2%, driven by reduced weight per shipment, lower fuel surcharges, and one fewer operating day, though revenue per shipment increased 2% [19] - U.S. domestic Express volumes declined 3%, while Ground volumes slightly increased due to targeted growth strategies [20] - International export package volumes increased 9%, driven by international economy services [20] - FedEx Freight saw a 3% decline in both weight per shipment and average daily shipments, attributed to a shift of heavier freight to the truckload market [21] Market Performance - U.S. domestic market faced significant weakness, particularly in B2B volumes, driven by a softer industrial economy [6][20] - International markets showed growth, with a 9% increase in export package volumes, particularly in Asia [20][24] - Europe remains a focus area, with $600 million in expected DRIVE-related savings and ongoing network optimizations [11][24] Strategy and Industry Competition - The company is on track to deliver $4 billion in DRIVE-related savings by FY '25, with $390 million achieved in Q1 [7][9] - Network transformation initiatives, including Tricolor and Network 2.0, aim to improve profitability by increasing network flexibility and reducing costs [7][12] - The company is prepared for the expiration of the U.S. Postal Service contract and is reducing daytime flight hours by 60% [31] - Strategic pricing actions, including a 5.9% general rate increase and new demand surcharges, are expected to improve yield in the coming quarters [22][23] Management Commentary on Operating Environment and Outlook - Management noted a challenging demand environment, particularly in the U.S., with weaker-than-expected industrial activity impacting B2B volumes [6][27] - The company expects a moderate improvement in the industrial economy and e-commerce growth in the second half of FY '25 [23][24] - Management remains confident in the company's ability to deliver on its FY '25 guidance, supported by DRIVE savings and pricing actions [8][30] Other Important Information - The company completed $1 billion in stock repurchases in Q1 and plans to repurchase an additional $1 billion in Q2 [35] - Capital expenditures for FY '25 are expected to be $5.2 billion, flat compared to FY '24 [34] - The company announced a strategic alliance with Nimble, an AI robotics and autonomous e-commerce fulfillment technology company, to streamline operations and penetrate the global e-commerce market [14] Q&A Session Summary Question: Negative mix shift and pricing actions [37] - The company is confident in its pricing strategy, including demand surcharges and fuel surcharge adjustments, despite a challenging environment [38][39] - International demand surcharge pressure is expected to taper as the year progresses, with strength in Asia export markets [40] Question: Q2 EPS seasonality and second-half ramp [42] - Q2 EPS is expected to be below normal seasonality due to the U.S. Postal Service contract termination and the timing of Cyber Week, with a stronger second half driven by DRIVE savings and revenue actions [43] Question: DRIVE savings shortfall in Q1 [45] - DRIVE savings in Q1 were $390 million, below expectations, but the company remains committed to $2.2 billion in savings for FY '25, with a robust pipeline of initiatives [46][47] Question: Purchase transportation costs and international economy [48] - Purchase transportation costs increased due to higher freight forwarding revenue, ordinary rate increases, and investments in Tricolor, with international economy volumes contributing to profit but pressuring margins [49][50] Question: FedEx Freight capital deployment and strategic review [52] - FedEx Freight remains a key part of the capital investment program, with closures focused on non-growth locations, and the strategic review is on track for completion by year-end [53][54] Question: Q2 sequential earnings improvement and peak surcharge capture [56] - Sequential profit improvement is expected in Q2, supported by pricing actions and DRIVE savings, with confidence in peak surcharge capture due to pre-negotiated terms and customer understanding of network pressures [57][58] Question: Network flexibility and intra-quarter adjustments [60] - The company is continuously adjusting its network to demand trends, with additional flexibility expected post-U.S. Postal Service contract expiration [61][62] Question: DRIVE and Tricolor progress vs. low profitability [64] - Management emphasized focus on controllable factors, including DRIVE savings, revenue quality initiatives, and profitable growth opportunities, with confidence in delivering FY '25 guidance [66][67] Question: Macro environment and port strike impact [73] - The industrial economy remains weak, with cautious optimism for moderate improvement in the second half, while port disruptions could favor air freight [74][76] Question: LTL strategic review and Europe profitability [78] - The LTL strategic review is on track for completion by year-end, while Europe remains a priority with a focus on cost improvements and profitable share gains [79][80] Question: Earnings cadence and freight margin reporting [84] - Q2 is expected to be below normal seasonality, with improvement in the second half, while freight margins are expected to decline for the full year due to the challenging industrial economy [85][92] Question: Asia export volumes and Tricolor impact [86] - Asia export volumes are expected to remain strong, with Tricolor optimization improving international margins, particularly for deferred services [88][89] Question: Margin outlook and flow-through [91] - Adjusted FEC margins are expected to improve in FY '25, driven by DRIVE savings and pricing actions, with Network 2.0 and Tricolor providing long-term profitability drivers [92][93]

In some ways, FedEx is a bellwether of global trade and logistics.After all, global growth, inflation, fuel costs, interest rates, supply chain disruptions and competition are all elements that affect FedEx’s revenue, margins and strategic investments. They also each represent things all businesses need to watch out for.And as the company’s Thursday (Sept. 19) first-quarter 2025 earnings proved, while the operating backdrop is tough and uncertain, embracing digital innovation to unlock growth through new ef ...