Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 22, 2024

Article Excerpt

FEDEX CORP., $284.32, New York symbol FDX, remains a buy. The company delivers packages in the U.S. and 220 other countries. The stock rose 13% this week after FedEx reported better-than-expected quarterly earnings (excluding unusual items). It also increased its share buyback authorization. In its fiscal 2024 third quarter, ended February 29, 2024, revenue declined 1.9%, to $21.79 billion from $22.17 billion a year earlier. That also missed the consensus forecast of $22.12 billion. The lower revenue is partly because the U.S. Postal Service, which is FedEx’s biggest customer, is shifting more of its volumes from the company’s air freight routes to its cheaper ground delivery services. However, FedEx continues to benefit from a new restructuring plan, which includes merging its FedEx Express (air freight), FedEx Ground, FedEx Services and other smaller operating companies into a single division. These moves have cut $1.8 billion from its annual costs. If you exclude costs related to that plan and other unusual items, FedEx’s earnings rose 11.7%, to $966…