FedEx (NYSE:FDX) Shares Gap Up on Earnings Beat

FedEx Corporation (NYSE:FDX) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $356.11, but opened at $380.82. FedEx shares last traded at $363.7220, with a volume of 2,339,451 shares traded.

The shipping service provider reported $5.25 EPS for the quarter, topping analysts’ consensus estimates of $4.12 by $1.13. FedEx had a return on equity of 17.03% and a net margin of 4.88%.The business had revenue of $24 billion for the quarter, compared to analysts’ expectations of $23.44 billion. During the same period in the previous year, the firm earned $4.51 EPS. The business’s quarterly revenue was up 8.3% on a year-over-year basis.

FedEx Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 9th will be paid a $1.45 dividend. This represents a $5.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, March 9th. FedEx’s payout ratio is presently 30.87%.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance raise — FedEx posted a double beat (EPS and revenue) and lifted full‑year profit guidance, which is the primary driver behind the stock rally. Article Link
• Positive Sentiment: Analyst re‑ratings and price‑target lifts — Multiple firms (UBS, Wells Fargo, BofA, Susquehanna, Stephens, TD Cowen, Truist, Stifel, BMO, etc.) raised targets or upgraded ratings after the results, supporting further upside sentiment. Article Link
• Neutral Sentiment: Management says demand is holding — FedEx flagged that early‑March volumes matched expectations and that its fuel surcharge is moderating higher fuel costs, but management assumes no additional geopolitical disruptions. That reduces immediate downside but leaves exposure to future shocks. Article Link
• Neutral Sentiment: Market context is mixed — broader markets are pressured by oil/geo risks and macro data, so FedEx’s outperformance is occurring in a risk‑off environment that could limit follow‑through. Article Link
• Negative Sentiment: Cost and segment risks persist — fuel costs are materially higher (a key margin headwind) and the Freight business remains weak; both could pressure results if trends worsen. Article Link
• Negative Sentiment: Some caution in the market and mixed guidance reaction — a few headlines note the company gave a relatively cautious near‑term forecast that caused intraday profit‑taking, and one major house (Morgan Stanley) still expresses an underweight stance with a much lower target. Article Link
• Negative Sentiment: Operational/PR risk — the NTSB is probing a close runway call involving a FedEx jet, a reputational/operational overhang to monitor. Article Link

Wall Street Analyst Weigh In

FDX has been the subject of several analyst reports. Wolfe Research increased their price target on shares of FedEx from $355.00 to $394.00 and gave the company an “outperform” rating in a research report on Tuesday, February 10th. Raymond James Financial upped their price objective on shares of FedEx from $305.00 to $410.00 and gave the company an “outperform” rating in a research note on Friday, February 13th. Wells Fargo & Company increased their target price on shares of FedEx from $430.00 to $450.00 and gave the stock an “overweight” rating in a report on Friday. HSBC raised FedEx from a “reduce” rating to a “hold” rating and set a $360.00 target price on the stock in a research note on Friday. Finally, Morgan Stanley boosted their price target on FedEx from $220.00 to $230.00 and gave the company an “underweight” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, FedEx currently has an average rating of “Moderate Buy” and an average target price of $393.85.

Institutional Investors Weigh In On FedEx

A number of large investors have recently modified their holdings of FDX. Vanguard Group Inc. raised its stake in FedEx by 13.2% in the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock worth $5,527,870,000 after buying an additional 2,741,723 shares in the last quarter. Dodge & Cox lifted its holdings in FedEx by 12.0% in the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock worth $3,826,055,000 after buying an additional 1,742,666 shares during the period. State Street Corp boosted its position in FedEx by 4.2% during the 4th quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider’s stock valued at $2,763,824,000 after acquiring an additional 382,848 shares in the last quarter. Franklin Resources Inc. grew its holdings in shares of FedEx by 6.6% during the 4th quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider’s stock worth $1,482,785,000 after acquiring an additional 318,293 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of FedEx by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider’s stock worth $1,443,666,000 after acquiring an additional 45,818 shares during the period. Institutional investors own 84.47% of the company’s stock.

FedEx Price Performance

The stock has a market cap of $84.28 billion, a P/E ratio of 19.08, a price-to-earnings-growth ratio of 1.70 and a beta of 1.29. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.23 and a current ratio of 1.27. The firm has a 50-day moving average price of $351.21 and a 200-day moving average price of $291.29.

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.