FedEx Q4 earnings expectations and market predictions (NYSE:FDX)

FedEx (NYSE:FDX) shares rose 1.42% in early morning trading on Monday, ahead of the company’s fiscal fourth-quarter results on June 25th, after the closing bell.

On average, Wall Street expects the delivery services giant to post a quarterly EPS of $5.38 (+8.9% Y/Y) along with a revenue of $22.06B (+0.7% Y/Y).

For the full year, FDX currently projects a low-single-digit percentage decline in revenue and narrowed its adjusted profit guidance to $17.25 to $18.25 before MTM retirement plans, versus the previous range of $17 to $18.50 per share.

In April, FDX lost a major USPS air cargo provider contract to rival United Postal Service (UPS), pulling its shares lower.

Noting the development, Morgan Stanley analyst Ravi Shanker said that while the incremental contribution per unit was likely low, the firm calculated that the fixed cost absorption of the volumes was significant, which means the development could drag operating leverage for FDX in the Express segment.

“The Street is seeing the first expected, positive yoy growth since mid-22 for FedEx’s revenue, operating income, and earnings per share when the company reports its Q4 2024 earnings this week,” said CFA Brian Gilmartin, SA analyst.

“FedEx is like a marathon runner who’s hit a rough patch but is far from out of the race. With the right strategies and a bit of economic luck, it could be sprinting toward a strong finish,” said Reality Check Research, SA analyst.

In its previous quarterly results, FedEx saw its shares rally on account of cost savings in its Express business and improved FQ3 margins.

Over the last two years, FDX has beaten EPS estimates 75% of the time and has beaten revenue estimates 0% of the time.

Over the last three months, EPS estimates have seen six upward revisions and 13 downward. Revenue estimates have seen two upward revisions and 10 downward.