FedEx fiscal third quarter earnings are mixed



The brokerage now has a "hold" rating on the shipping service provider's stock. FedEx now has a consensus rating of "Buy" and a consensus target price of $201.48. That would be its fourth straight quarter of decelerating EPS growth and the smallest gain in three years.

FedEx on Tuesday reported worse-than-expected quarterly operating earnings, but an optimistic outlook for margins in the near-term soothed investor concerns and pushed the stock higher in after-hours trading. JPMorgan Chase & Co. set a $230.00 target price on FedEx and gave the company a "buy" rating in a research note on Wednesday, December 28th. "Our price target increases from $214 to $218 on an increased fiscal 2018 adjusted earnings per share". Given the stock's recent action, it seemed like a good time to take a closer look at the company's recent data. Analyst's mean target price for ALB is $109.71 while analysts mean recommendation is 2.40.

FedEx Corporation (NYSE:FDX) said some of its largest retail customers shipped fewer packages during the holiday season than forecast, after the delivery giant had ramped up spending and staffing in anticipation of a crush of deliveries.

Total average daily packages at 4.428 million were up 3 percent, with total daily US domestic packages up 1 percent at 2.896 million and revenue per package up 3 percent up $17.36.

"With volume that more than doubled our daily average on multiple days, all of our year around preparation paid off and our networks performed as created to meet the surge in demand", he said on the company's earnings call. FedEx Co. has a 12-month low of $145.00 and a 12-month high of $201.57. The company's market cap is $51.24 Billion, and the average volume is $1.57 Million.

FedEx Corporation (NYSE:FDX) moved up 0.77% and closed its last trading session at $194.59.

The Memphis-based company reported net income for its fiscal third quarter ending February 28 of $562 million or $2.07 per share, up from $507 million or $1.84 per share, a year earlier.

Profit margins shrunk in both the ground and freight sectors, down 1.6 and 1.2 percentage points respectively.

The company said it's targeting operating income improvement at the FedEx Express group of $1.2 billion to $1.5 billion in fiscal 2020 versus the current fiscal year, assuming moderate economic growth and current accounting and tax rules. On an adjusted basis, profits came to $2.35 per share. FedEx's revenue for the quarter was up 19.2% on a year-over-year basis. The Zacks Consensus Estimate for fiscal 2017 now stands at $11.99 per share.

The business also recently announced a quarterly dividend, which will be paid on Monday, April 3rd. Stockholders of record on Monday, March 13th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, March 9th. FedEx's dividend payout ratio (DPR) is 23.46%.

In other FedEx news, EVP Robert B. Carter sold 34,580 shares of FedEx stock in a transaction dated Wednesday, January 25th. The stock was sold at an average price of $191.22, for a total value of $6,612,387.60. Following the transaction, the executive vice president now directly owns 77,062 shares of the company's stock, valued at $14,735,795.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

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