Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 23, 2022

Article Excerpt

FEDEX CORP., $176.54, New York symbol FDX, remains a buy for your long-term gains. The company delivers packages in the U.S. and 220 other countries. In its fiscal 2023 second quarter, ended November 30, 2022, FedEx’s revenue declined 2.8%, to $22.81 billion from $23.47 billion a year earlier. That missed the consensus forecast of $23.7 billion. The revenue drop is mainly due to lower package volumes as consumers buy fewer goods online in response to rising interest rates and inflation. The lower revenue also cut FedEx’s earnings before unusual items by 37.3%, to $815 million from $1.30 billion. Due to fewer shares outstanding, per-share earnings fell at a slower rate of 34.2%, to $3.18 from $4.83. Even so, that easily topped the consensus estimate of $2.82 a share. FedEx is now stepping up its cost-cutting efforts, including idling more planes, closing offices and laying off employees. It expects these actions will save it $3.7 billion in fiscal 2023, up $1 billion from its earlier target. As…