FDX Earnings: FedEx Surges 16% after Q4 Results

Shares of delivery services company FedEx (NYSE:FDX) surged 16% in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $5.41, which beat analysts’ consensus estimate of $5.34 per share.

Sales increased by 0.9% year-over-year, with revenue hitting $22.1 billion. This beat analysts’ expectations of $22.076 billion.

Looking forward, management now expects revenue in FY 2025 to grow by a low-to-mid single-digit percentage. Furthermore, adjusted earnings per share are anticipated to land between $20 and $22. For reference, analysts were expecting an adjusted EPS of $21.14. FedEx also expects to repurchase $2.5 billion worth of stock during the year.

Investor Sentiment for FDX Stock

The sentiment among TipRanks investors was very negative going into the earnings report. Out of the 741,875 portfolios tracked by TipRanks, 0.4% hold FDX stock. In addition, the average portfolio weighting allocated towards FDX among those who do have a position is 3.95%. This suggests that investors of the company are fairly confident about its future.

However, in the last 30 days, 1.6% of those holding the stock decreased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image. Nevertheless, today’s results seem like they could possibly boost investor sentiment.

Is FedEx a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on FDX stock based on 11 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 10% rally in its share price over the past year, the average FDX price target of $301.85 per share implies 19.15% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.