Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 24, 2021

Article Excerpt

FEDEX CORP., $226.64, New York symbol FDX, remains a buy for your long-term gains. The company delivers packages in the U.S. and 220 other countries. FedEx continues to see stronger demand for its services as the economy re-opens. However, rising costs for fuel and labour shortages are hurting its earnings. That caused the stock to fall 11% this week. In its fiscal 2022 first quarter, ended August 31, 2021, revenue rose 13.9%, to $22.00 billion from $19.32 billion a year earlier. That beat the consensus forecast of $21.86 billion. However, due to a shortage of workers, FedEx has had to pay its existing employees higher wages and overtime payments. That added $450 million to its costs in the latest quarter, which is why earnings before one-time items fell 7.5%, to $1.19 billion from $1.28 billion. Due to more shares outstanding, per-share earnings declined at a faster rate of 10.3%, to $4.37 from $4.87. That missed the consensus estimate of $4.88. FedEx plans to raise its…