📈🌟 FedEx grows on optimistic outlook!
FedEx $FDX is a global leader in transportation, logistics and delivery services, known for its reliability and speed. Founded in1971 , the company has since become amajor player in the market, providing innovative solutions for parcel delivery and freight transportation.
Company shares on Wednesday were up more than 14 % following the release of a positive profit forecast for the year. The company estimates that fiscal year 2025 will deliver earnings of$20 to $22 per share, beating analysts' expectations. Cost-saving measures put in place are expected to generate $2.2 billion in savings .
Q4 highlights:
Earnings per share for the fourth quarter of fiscal 2024 were $5.41, beating the consensus estimate of$5.34 and improving year-over-year by 9,5 %. Results were supported by cost savings from theDRIVE initiative .
Revenues of $22.109 billion fell slightly short of the consensus estimate of$22.115 billion, but increased from the prior year quarter by 0,8 %.
For the fiscal year, management expects 2025 year-over-year revenue growth in the range of several percent.
FedEx is also considering the future of its freight division FedEx Freight, which achieved quarterly sales of $2.3 billion.
📊 "FedEx's transformation is on the rise and the strategic moves around Freight cannot be underestimated," said J.P. Morgan analyst Brian Ossenbeck.
🔍 David Vernon z Bernstein a Stephanie Moore z Jefferies estimate the value of the freight division at USD 30 billion and believes that a stand-alone unit could better balance margins with competitors.
FedEx is combining its delivery companies to cut costs and increase competitiveness against UPS and Amazon. As a result, quarterly operating margins increased to 8,5 % from last year's 8,1 %.
💡Nine brokerage companies, including J.P. Morgan, have raised their target prices for FedEx. Management believes continued cost cutting will be beneficial, even as demand for package delivery remains weak due to inflation and higher interest rates.
What do you think of FedEx's results?
Cohesion is nicely getting out of the abyss it has fallen into in recent years. The stock is doing well now. I'm just bothered by the pretty high debt there, which has been rising since the covenant. But the business is very good and the services of this company are not going away.