FedEx (NYSE:FDX) Shares Gap Up After Better-Than-Expected Earnings

FedEx Co. (NYSE:FDX) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $275.88, but opened at $294.00. FedEx shares last traded at $284.18, with a volume of 1,317,551 shares trading hands.

The shipping service provider reported $4.05 EPS for the quarter, beating the consensus estimate of $3.88 by $0.17. FedEx had a net margin of 4.62% and a return on equity of 15.61%. The firm had revenue of $22 billion during the quarter, compared to the consensus estimate of $22.14 billion. During the same period in the prior year, the firm posted $3.99 earnings per share. The company’s quarterly revenue was down .7% compared to the same quarter last year.

FedEx Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 3rd. Investors of record on Monday, December 9th will be paid a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a yield of 2.00%. The ex-dividend date is Monday, December 9th. FedEx’s payout ratio is currently 35.18%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on FDX shares. Hsbc Global Res cut shares of FedEx from a “strong-buy” rating to a “hold” rating in a report on Friday, September 20th. Barclays increased their price target on shares of FedEx from $350.00 to $365.00 and gave the company an “overweight” rating in a report on Wednesday, November 13th. HSBC cut shares of FedEx from a “buy” rating to a “hold” rating and set a $300.00 target price on the stock. in a report on Friday, September 20th. Daiwa America downgraded shares of FedEx from a “moderate buy” rating to a “hold” rating in a research report on Wednesday, September 11th. Finally, BMO Capital Markets increased their price target on shares of FedEx from $300.00 to $330.00 and gave the stock a “market perform” rating in a research report on Friday. Two analysts have rated the stock with a sell rating, eight have given a hold rating and nineteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, FedEx presently has a consensus rating of “Moderate Buy” and an average price target of $324.88.

Institutional Investors Weigh In On FedEx

Institutional investors have recently modified their holdings of the stock. Virtu Financial LLC bought a new stake in shares of FedEx during the 3rd quarter worth approximately $3,405,000. Czech National Bank grew its stake in FedEx by 6.4% during the 3rd quarter. Czech National Bank now owns 45,909 shares of the shipping service provider’s stock worth $12,564,000 after buying an additional 2,767 shares during the last quarter. Magnolia Capital Advisors LLC purchased a new position in FedEx during the 2nd quarter worth $9,226,000. Raymond James & Associates grew its stake in FedEx by 6.9% during the 3rd quarter. Raymond James & Associates now owns 485,698 shares of the shipping service provider’s stock worth $132,926,000 after buying an additional 31,241 shares during the last quarter. Finally, Versor Investments LP purchased a new position in FedEx during the 3rd quarter worth $2,096,000. 84.47% of the stock is owned by institutional investors.

FedEx Price Performance

The stock has a fifty day moving average of $282.71 and a 200 day moving average of $282.10. The stock has a market cap of $67.37 billion, a price-to-earnings ratio of 17.01, a P/E/G ratio of 1.17 and a beta of 1.18. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.28 and a quick ratio of 1.24.

About FedEx

FedEx Corporation 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.