FedEx Price Target Cut at Stifel

FedEx (NYSE:FDX) shares fell more than 5% intra-day today after the logistics giant issued a weaker-than-expected profit forecast for the current quarter, fueling concerns about global demand and rising trade tensions.

Despite delivering a better-than-anticipated fourth-quarter performance—posting earnings per share of $6.07 on $22.2 billion in revenue, topping analyst estimates—investors focused on the company’s cautious guidance. FedEx projects adjusted Q1 EPS between $3.40 and $4.00, missing Wall Street’s expectation of $4.06.

The company also withheld full-year earnings and revenue guidance, citing a highly uncertain macro environment. CEO Raj Subramaniam described global demand as “volatile” during the earnings call, while executives pointed to rising trade frictions as another headwind. In particular, the decision to end duty-free status for low-cost shipments from China-linked retailers like Shein and Temu has weighed on profitability.

The results from FedEx, often viewed as a bellwether for economic activity, follow growing business caution amid political and trade uncertainty tied to former President Trump’s renewed tough stance on China. Combined with structural cost cuts of $2.2 billion over the past year, FedEx is trying to offset weaker volumes, but near-term visibility remains limited.

Investors appear to be bracing for a rocky start to the new fiscal year, as external pressures continue to cloud the outlook.

FedEx Corporation (NYSE: FDX) is a global leader in transportation, e-commerce, and business services. Known for its overnight shipping service, FedEx operates in over 220 countries and territories. The company competes with major players like UPS and DHL in the logistics industry. On June 24, 2025, FedEx reported impressive financial results, with earnings per share (EPS) of $6.07, surpassing the estimated $5.93. The company also reported revenue of $22.2 billion, exceeding the estimated $21.8 billion.

FedEx's recent financial performance highlights its successful cost-cutting measures. The company achieved its $4 billion cost-cutting target and plans to further reduce costs by $1 billion in the next fiscal year. CEO Raj Subramaniam expressed confidence in the company's transformation initiatives, which focus on integrating networks and reducing costs to create long-term value. Despite these positive results, FedEx's stock fell by about 5% in after-hours trading due to profit guidance for the current quarter that was slightly below Wall Street's expectations.

The company's financial metrics provide insight into its market valuation and financial health. FedEx has a price-to-earnings (P/E) ratio of approximately 14.06, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 0.63, suggesting that investors are paying 63 cents for every dollar of sales. The enterprise value to sales ratio is around 1.05, reflecting the company's total valuation relative to its sales.

FedEx's operating income increased to $1.79 billion, with an adjusted figure of $2.02 billion, compared to $1.56 billion and $1.87 billion, respectively, in the prior year. The operating margin improved to 8.1%, with an adjusted margin of 9.1%, up from 7.0% and 8.5% in the previous fiscal year. These improvements demonstrate the company's ability to enhance profitability through effective cost management.

Despite the positive financial results, FedEx shares have declined by over 18% year-to-date. The company's debt-to-equity ratio is approximately 1.39, indicating its leverage level. Additionally, FedEx has a current ratio of about 1.24, suggesting its ability to cover short-term liabilities with short-term assets. These metrics provide a comprehensive view of FedEx's financial position and its potential for future growth.

• Bank of America Securities upgraded FedEx (NYSE:FDX) to a "Buy" rating, with a current stock price of $229.23.
• FedEx is expected to report fourth-quarter revenue of $21.84 billion, with an EPS prediction of $5.87.
• The stock has shown volatility over the past year, with a high of $313.84 and a low of $194.30.

On June 23, 2025, Bank of America Securities upgraded FedEx (NYSE:FDX) to a "Buy" rating, with the stock priced at $229.23. FedEx is a major player in the logistics and transportation industry, providing services worldwide. The company's competitors include UPS and DHL, making the logistics sector highly competitive.

FedEx is set to release its fourth-quarter financial results soon, which will be crucial for understanding the company's performance. Analysts expect FedEx to report a fourth-quarter revenue of $21.84 billion, slightly down from $22.1 billion in the same quarter last year. Despite this anticipated decline, FedEx has exceeded revenue estimates in the last two quarters, showing resilience in a challenging market.

For earnings per share (EPS), analysts predict $5.87, up from $5.41 in the previous year's fourth quarter. Although FedEx has missed EPS estimates in the last three quarters, it has surpassed them in six of the past ten quarters. This mixed performance makes the upcoming earnings report significant for investors and market strategists.

Currently, FedEx's stock is priced at $229.23, reflecting a positive change of $3.19, or a 1.41% increase. The stock has fluctuated between $223.75 and $229.29 during the day. Over the past year, FedEx has experienced a high of $313.84 and a low of $194.30, indicating volatility in its stock price.

FedEx's market capitalization is approximately $54.92 billion, with a trading volume of 1,621,647 shares. This data highlights the company's significant presence in the market and the interest it generates among investors. The upcoming financial results will be closely watched for any signs of a sustained rebound in FedEx's performance.

FedEx Corporation, listed as NYSE:FDX, is a global leader in transportation, e-commerce, and business services. The company is set to release its quarterly earnings on June 24, 2025. Analysts predict an earnings per share (EPS) of $5.94, with projected revenue of approximately $21.84 billion. FedEx's performance is closely watched, especially in comparison to competitors like UPS and DHL.

Despite a recent 1.5% downward revision, FedEx's Q4 earnings are expected to rise by 9.8% year over year. This increase is notable given the challenges faced by the Express unit, which is projected to see a 3.2% decline in revenues due to weak demand and low shipping volumes. The company's DRIVE efficiency program aims to mitigate these challenges by reducing salary and operating expenses.

The Zacks Consensus Estimate aligns with Wall Street's EPS prediction of $5.94, while revenue is slightly lower at $21.7 billion, reflecting a 1.9% decrease from the previous year. This downward revision in revenue estimates indicates a reassessment by analysts, which can significantly impact investor sentiment and stock performance.

FedEx's financial metrics provide insight into its market valuation. With a P/E ratio of 13.68, the market values its earnings moderately. The price-to-sales ratio of 0.61 suggests investors pay 61 cents for every dollar of sales. The enterprise value to sales ratio of 1.03 and the enterprise value to operating cash flow ratio of 12.55 highlight the company's valuation relative to its sales and cash flow.

The company's debt-to-equity ratio of 1.39 indicates a balanced use of debt and equity in financing its assets. FedEx's current ratio of 1.24 suggests it has sufficient liquidity to cover short-term liabilities. These financial metrics, along with the anticipated earnings report, will be crucial in determining FedEx's stock performance and investor confidence.

On March 27, 2025, Smith John Alan, the Chief Operating Officer for US and Canada at FedEx (NYSE:FDX), sold 3,345 shares of Common Stock at $243.55 each. This transaction leaves him with 23,347 shares. FedEx, a global leader in transportation and logistics, competes with companies like UPS and DHL in delivering packages worldwide.

FedEx recently announced its third-quarter fiscal 2025 results, showing mixed outcomes. The company reported earnings of $4.51 per share, excluding 75 cents from non-recurring items, which fell short of the Zacks Consensus Estimate of $4.65. Despite this, the earnings per share improved by 16.8% year-over-year, thanks to cost-reduction benefits from the DRIVE program.

The company's revenues reached $22.2 billion, surpassing the Zacks Consensus Estimate of $21 billion. However, FedEx revised its fiscal 2025 earnings per share outlook downward due to challenging economic conditions. This marks the second time in four quarters that FedEx has missed earnings estimates, raising concerns among investors.

FedEx's stock is under scrutiny as investors assess its current valuation. The company has a price-to-earnings (P/E) ratio of approximately 14.94, indicating how the market values its earnings. Its price-to-sales ratio is about 0.67, meaning investors pay 67 cents for every dollar of sales, while the enterprise value to sales ratio is around 0.86.

The enterprise value to operating cash flow ratio stands at approximately 10.53, showing the relationship between FedEx's total valuation and its cash flow from operations. The earnings yield is about 6.69%, offering insight into shareholder returns. With a debt-to-equity ratio of approximately 0.27, FedEx maintains a relatively low level of debt compared to its equity, and a current ratio of about 1.24, indicating good liquidity to cover short-term liabilities.

On March 27, 2025, Smith John Alan, the Chief Operating Officer for US and Canada at FedEx (NYSE:FDX), sold 3,345 shares of Common Stock at $243.55 each. This transaction leaves him with 23,347 shares. FedEx, a global leader in transportation and logistics, competes with companies like UPS and DHL in delivering packages worldwide.

FedEx recently announced its third-quarter fiscal 2025 results, showing mixed outcomes. The company reported earnings of $4.51 per share, excluding 75 cents from non-recurring items, which fell short of the Zacks Consensus Estimate of $4.65. Despite this, the earnings per share improved by 16.8% year-over-year, thanks to cost-reduction benefits from the DRIVE program.

The company's revenues reached $22.2 billion, surpassing the Zacks Consensus Estimate of $21 billion. However, FedEx revised its fiscal 2025 earnings per share outlook downward due to challenging economic conditions. This marks the second time in four quarters that FedEx has missed earnings estimates, raising concerns among investors.

FedEx's stock is under scrutiny as investors assess its current valuation. The company has a price-to-earnings (P/E) ratio of approximately 14.94, indicating how the market values its earnings. Its price-to-sales ratio is about 0.67, meaning investors pay 67 cents for every dollar of sales, while the enterprise value to sales ratio is around 0.86.

The enterprise value to operating cash flow ratio stands at approximately 10.53, showing the relationship between FedEx's total valuation and its cash flow from operations. The earnings yield is about 6.69%, offering insight into shareholder returns. With a debt-to-equity ratio of approximately 0.27, FedEx maintains a relatively low level of debt compared to its equity, and a current ratio of about 1.24, indicating good liquidity to cover short-term liabilities.

Jefferies analysts upgraded FedEx (NYSE:FDX) from Hold to Buy, assigning a new price target of $275, slightly down from the previous $300, but reflecting renewed confidence in the company’s internal transformation efforts. As a result, shares surged more than 5% on Monday.

While broader market attention remains fixated on macroeconomic headwinds, Jefferies believes investors are overlooking FedEx’s structural cost improvements, which could drive earnings growth through fiscal 2026 and 2027, even in a sluggish revenue environment.

Key to this outlook are the company’s Network 2.0 restructuring initiative and its Tri-Color optimization strategy, both aimed at streamlining operations and improving profit margins. The analysts view these programs as underappreciated catalysts that could unlock substantial value over the next two years.

In addition, Jefferies highlights that any rebound in industrial activity—a major revenue driver for FedEx—could provide a significant earnings tailwind, amplifying the impact of internal efficiency gains.

Despite recent cuts to guidance and macro pressures, Jefferies sees a favorable risk-reward setup for FedEx, supported by operational transformation and potential cyclical upside, making the stock attractive at current levels.