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What To Expect From FedEx's Q3 After 20% Gains In A Year?
FDXFedEx(FDX) Forbes·2024-03-20 16:00

Core Viewpoint - FedEx is expected to report fiscal Q3 2024 results on March 21, with revenue in line and earnings above street expectations, driven by marginal growth in average daily volumes and cost reduction actions [1] Revenue Expectations - FedEx's Q3 2024 revenues are estimated to be around 22.0billion,reflectinga122.0 billion, reflecting a 1% year-over-year decline, aligning with consensus estimates [3] - The company experienced a 3% year-over-year decline in total revenues to 22.2 billion in Q2 2024, attributed to falling delivery volumes amid high inflation [3] Earnings Per Share (EPS) Projections - Adjusted EPS for Q3 FY 2024 is expected to be 3.58,higherthantheconsensusestimateof3.58, higher than the consensus estimate of 3.49, and up from 3.41intheprior−yearquarter[4]−FedEx′sadjustednetincomeinQ22024was3.41 in the prior-year quarter [4] - FedEx's adjusted net income in Q2 2024 was 1.0 billion, a 24% increase from 815millionintheprior−yearquarter,duetocost−cuttinginitiatives[4]StockValuationandGrowthPotential−FedEx′sstockvaluationisestimatedat815 million in the prior-year quarter, due to cost-cutting initiatives [4] Stock Valuation and Growth Potential - FedEx's stock valuation is estimated at 284 per share, which is 11% above its current market price of 257,basedona16xforwardexpectedadjustedearningsof257, based on a 16x forward expected adjusted earnings of 17.57 [5] - The company is expected to benefit from market share gains and improved margins, with potential rate cuts this year likely to positively impact FDX stock [5]