Logistics giant FedEx (FDX) is set to announce the results for the third quarter of Fiscal 2025 after the market closes on Thursday, March 20. FDX stock has declined over 12% year-to-date, primarily due to global trade uncertainty, weaker industrial demand, and increasing competition from players like United Parcel (UPS). Wall Street analysts expect the company to report earnings of $4.56 per share, representing a 18% increase year-over-year.
Meanwhile, revenues are expected to grow by 0.6% from the year-ago quarter to $21.88 billion, according to data from the TipRanks Forecast page.
Analysts’ Views Ahead of FDX’s Q3 Earnings
Ahead of FedEx’s Fiscal Q3 earnings, Citi analyst Ariel Rosa lowered the price target on the stock to $317 from $347, while reiterating a Buy rating.
Rosa notes growing investor concerns over tariffs, weaker consumer demand, and a slowdown in industrial activity. He notes that market sentiment appears overly negative, with many expecting FedEx to lower its full-year F2025 earnings outlook again.
However, the analyst remains optimistic about the company’s long-term outlook, pointing to strong cost-control efforts that could lead to better-than-expected Q3 results. Also, Rosa sees the current valuation as attractive and believes FedEx has room to surprise investors positively.
Meanwhile, Bernstein analyst David Vernon cut his price target on FedEx to $282 from $320, keeping a Neutral rating. The analyst sees value in the stock at the current levels, but expects global trade uncertainty and integration challenges to pressure earnings, projecting 2026 profits 10% below consensus.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.55% move in either direction.
Is FedEx a Buy, Sell, or Hold?
Wall Street is cautiously optimistic on FedEx stock, with a Moderate Buy consensus rating based on 13 Buys, six Holds, and one Sell recommendation. The average FDX stock price target of $315.50 implies 28.62% upside potential from current levels.
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