Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 16, 2022

Article Excerpt

FEDEX CORP., $161.02, New York symbol FDX, remains a buy for your long-term gains. The company delivers packages in the U.S. and 220 other countries. The stock fell 21% on Friday after the company reported lower-than-expected revenue and earnings for its latest quarter. In its fiscal 2023 first quarter, ended August 31, 2022, revenue improved 5.5%, to $23.2 billion from $22.0 billion. Even so, that missed the consensus forecast of $23.6 billion. The company is seeing lower demand in China, due to that country’s COVID-19 lockdowns. Demand was also weaker in Europe as it copes with rising energy costs. As well, global e-commerce volumes, which surged during the early stages of the pandemic, are starting to decline. Despite the higher revenue, rising costs cut earnings before unusual items by 21.3%, to $3.44 a share from $4.37 a year earlier. That also fell well short of the consensus estimate of $5.14 a share. FedEx plans to improve its profitability with several new actions, including cutting the frequency…