FedEx Corporation (NYSE:FDX): 12 Analyst have given the stock of FedEx Corporation (NYSE:FDX) a near short term price target of $194.67.
Advertisement
FedEx Corp. said that it expects to earn between $10.40 and $10.90 for the fiscal year that ends next May, down 20 cents from an earlier prediction.
The transportation company now estimates the EPS for 2016 to be in the range of $10.4-10.9. The stock has declined slightly in the last 12 months. Fedex Corporation has a 52 week low of $130.01 and a 52 week high of $185.19.
The company reported that revenues from its ground segment were $3.83 billion, up 29% from last year. The shipper will charge $110 for each unauthorized package shipped by FedEx Ground, which are packages that are larger or heavier than FedEx’s service guidelines allow.
“It’s important to note that the LTL industry is very closely tied to industrial production”, said Mike Glenn, chief executive officer of FedEx Corporate Services, referring to the less-than- truckload business.
FedEx posted a net profit for its first quarter 2016 fiscal year ending on August 31 of $692 million equal to $2.42 a share, which was up 6% from the year before of $653 million equal to $2.26 a share.
FedEx shares have decreased 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined almost 4 percent. Value stock investors typically look for equities that are trading at a lower price relative to the company’s fundamentals, such as earnings, sales and dividends. FedEx’s revenue for the quarter was up 5.1% compared to the same quarter last year. Revenue rose to 5% to $12.3 billion.
Purk said in an interview that the company must boost margins in its ground business, which have been hurt by a low-margin acquisition, and would be helped by any improvement in the global economy and trade.
FedEx (NYSE:FDX) shares were down 4% on Wednesday after the company announced weaker than expected quarterly earnings, AnalystRatingsNetwork.com reports. FedEx Express supplies a wide selection of domestic and global shipping services for delivery of packages and cargo. The Memphis Tennessee-based company, which is currently valued at $43.51 billion, has a median Wall Street price target of $196.00 with a high target of $214.00.
The FedEx Freight rate change applies to eligible shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
Advertisement
The company will also update fuel surcharge tables for FedEx Express and FedEx Ground and increase surcharges on shipments exceeding published maximum dimensions, effective Nov. 2. SmartPost is a service in which FedEx typically hands parcels off to the U.S. Postal Service for final delivery.
