FedEx Q2 Earnings To Come In Below Consensus, Says Morgan Stanley
The Memphis, Tennessee-based multinational delivery services company FedEx is expected to report its fiscal second-quarter earnings of $4.24 per share, which represents a year-over-year decline of over 12% from $4.83 per share seen in the same period a year ago.
The delivery firm would post revenue growth of about 9% to 22.41 billion up from $20.6 billion seen a year ago. In the last four quarters, the company has beaten earnings per share estimates (EPS) only twice.
FedEx stock was trading 2.35% higher at $240.84 on Monday. However, the stock declined by over 7% so far this year.
“After several negative catalysts in the Parcel space, momentum has (modestly) reversed in recent weeks. The question is can FedEx’s (FDX) print continue to build momentum or will we return to our prior pattern of disappointing updates? We believe consensus & guidance are still too optimistic,” noted Ravi Shanker, equity analyst at Morgan Stanley.
“We expect F2Q22 to come in below consensus. We are also below cons. for overall EBIT driven by misses in Ground and Express which are only partially offset by a beat in Freight. All in, we continue to believe the FY22 guidance cut from last quarter was not enough and see risk to F2Q and FY22 numbers as pandemic tailwinds die down.”
FedEx Stock Price Forecast
Twenty-one analysts who offered stock ratings for FedEx in the last three months forecast the average price in 12 months of $304.65 with a high forecast of $369.00 and a low forecast of $250.00.
The average price target represents a 26.49% change from the last price of $240.84. From those 21 analysts, 17 rated “Buy”, four rated “Hold” while none rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $250 with a high of $350 under a bull scenario and $125 under the worst-case scenario. The firm gave an “Equal-weight” rating on the multi-brand restaurant operator’s stock.
Several other analysts have also updated their stock outlook. Deutsche Bank raised the target price to $299 from $280. JPMorgan slashed the price target to $305 from $329. Cowen and company cut the target price to $283 from $297.
Technical analysis suggests it is good to sell as 100-day Moving Average, and 100-200-day MACD Oscillator signals a strong selling opportunity.
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