FedEx ,FDX) gears up to report for the third quarter late Thursday with demand issues under scrutiny as the delivery giant continues to slash costs. FDX stock rallied.
“Any demand recovery by 2024 would be a clear tailwind for performance given the company’s leverage to global growth,” Baird analyst Garrett Holland wrote in a March 9 note to clients.
Meanwhile, FedEx’s Drive program is targeting more than $4 billion in annualized structural cost reductions by fiscal 2025.
FedEx is a bellwether for the global economic outlook and industrial production.
Estimates: Analysts polled by FactSet expect a 41% EPS decline, year over year, to $2.71. Revenue is seen shrinking 3.7% to $22.718 billion.
Results: Check back Thursday after the market close for FedEx earnings.
Outlook: Wall Street expects full-year FedEx earnings per share of $13.58, a 34% decrease vs. 2022. That’s just above the $13.50 midpoint of management’s guidance of $13-$14, issued in December.
FDX Stock, UPS Stock
Shares of FedEx jumped 4.5% to 204.05 on the stock market todayreclaiming the 50-day and 200-day moving averages, along with the 21-day line.
FDX stock has a flat base with a 217.48 buy point after peaking in early February, the MarketSmith chart shows. A move above the March 9 intraday high of 213.31 would offer an early entry.
On Feb. 2, FedEx stock jumped after the shipper announced additional job cuts as part of its larger cost-cutting effort.
The relative strength line for FDX stock is rising after a tumble last year.
UPS ,UPS) gained 1.9% to 187.90 Thursday after holding its 50-day and 200-day lines on Wednesday. UPS stock has a 194.01 buy point from a flat base within a long, deep consolidation. The FedEx rival could offer an early entry.
FedEx Turnaround Attempt
FedEx continues to work on a turnaround.
“We believe the company has opportunities to improve profitability, which it has struggled to do in recent years amid heavy growth investments to service rising shipping volumes,” Edward Jones analyst Matt Arnold said.
In the prior quarter, its fiscal second quarter, FedEx earnings topped views as the Ground and Freight businesses improved profitability, But the Express business saw a sharp decline in profit margins due to lower shipment volumes.
YOU MAY ALSO LIKE,
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Futures Rise As Credit Suisse Taps $54 Billion From Swiss Central Bank