FedEx is scheduled to report earnings after Thursday’s close. The stock hit a record high of $319.90/share in 2021 and is currently trading near $329. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $3.90/share on $22.14 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.88/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have grown nicely over the last several years. In 2020, the company earned $9.50/share. In 2021, earnings jumped to $18.17.
Then, in 2022 earnings grew again to $20.61. In 2023, earnings slid to $14.96/share. This year, earnings are expected to grow to $17.80 and then grow to $19.44 in 2025.
In 2026, earnings are expected to grow to $22.79/share. It will be helpful to see more consistent growth going forward.
A Closer Look At The Technicals
Technically, the stock acting ok as it continues building a very long base. The stock is trading 13% below its 52-week high which is not that far off.
The stock recently fell below its 50 and 200 day moving average lines which are important levels many investors watch.
Near-term resistance is $313.84 and the bulls want to see the stock get above that level.
Meanwhile, the bears want to see the stock break down below $253 and keep falling.
Company Profile
FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments.
The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services.
The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services.
In addition, the company offers supply chain management solutions; and air and ocean freight forwarding and cargo transportation, specialty transportation, customs brokerage, third party logistics and supply chain, and document and business solutions, as well as provides trade management tools and data.
The company was founded in 1971 and is headquartered in Memphis, Tennessee.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured in FindLeadingStocks.com where I give members leading stocks breaking out and setting up to breakout in real-time.