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FedEx stock reportings are looking good lately. On Sept.14, 2020 the giant logistics company with recent target price-increases and analyst upgrades seem to be hot and things are trending up for the giant company.
The increase is positive it is expected on wall street for FED-EX to report $2.70 in earnings per share on $17.5 billion in earnings. Earnings estimates are rising, up from $1.80 at the end of June. Last year the Company reported EPS of $3.05 on $17 billion in sales. EPS has fallen over the years even before the pandemic hit, facing a slowing down economy which was pressuring profit margins. The optimism for analysts and investors about the booming e-commerce market and its meaning down the road for the logistical company.
When the fiscal year 2021 is reported both the investors and analysts will see if the growth was warranted or if the market got a little bit ahead of itself. Analyst estimates were pushed up by pricing surcharges implemented by FedEx report earnings and UPS as well as supply and demand tightening in the air freight market.
Because of the COVID-19 pandemic, FedEx management did not release full-year earnings, other logistic and transportation companies have also done the same due to the global pandemic. Implied by options markets about 8 or 9 percent of earnings are reported.
Over the last three months, stocks have returned about 79 percent. Comparable numbers for the S&P 500 and the Dow Jones are 12 percent and 10 percent respectively the stock has gained about 55 percent. From fiscal fourth quarters of 2018 and 2020. Shipping margin profits over the same period have fallen by 7 percent.
“Over the last month it’s become clearer that the nascent pricing tailwind we outlined is real and gaining steam,” wrote Citigroup analyst Christian Weatherbee in a Thursday research report. “
Written by Jasmin Williams
Edited by Cathy Milne-Ware
Source:
FedEx: Reports Earnings Today, Here’s What to Expect; Al Root
Top and Featured Image courtesy of Guy Williams Say’s Flickr Page – Creative Commons License