Shares of delivery services company FedEx (NYSE:FDX) gained in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $3.86, which beat analysts’ consensus estimate of $3.43 per share.
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Sales decreased by 2.3% year-over-year, with revenue hitting $21.7 billion. This missed analysts’ expectations by $380 million.
Looking forward, management now expects revenue in FY 2024 to decline by a low-single-digit percentage. Furthermore, adjusted earnings per share are anticipated to land between $17.25 and $18.25. For reference, analysts were expecting an adjusted EPS of $18.19.
Is FedEx a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on FDX stock based on 10 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 24% rally in its share price over the past year, the average FDX price target of $294.69 per share implies 11.25% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
