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FedEx (FDX) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research
·4-min read

FedEx Corporation FDX is set to release fourth-quarter fiscal 2021 (ended May 31, 2021) results on Jun 24, after market close.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings has been revised upward by 5.3% in the past 60 days. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 49.5%.

Against this backdrop, let’s take a look at the factors that are likely to have influenced the company’s fourth-quarter fiscal 2021 performance.

FedEx Corporation Price and EPS Surprise

FedEx Corporation Price and EPS Surprise
FedEx Corporation Price and EPS Surprise

FedEx Corporation price-eps-surprise | FedEx Corporation Quote

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Higher volumes, thanks to the coronavirus-driven rise in e-commerce demand and door-to-door delivery services are likely to have aided FedEx’s performance in the to-be-reported quarter.

Apart from FedEx, its rival United Parcel Service UPS is reaping significant benefits from this e-commerce boom. Other transportation companies like Atlas Air Worldwide Holdings AAWW and Air Transport Services Group ATSG are gaining from this upbeat scenario as well.

FedEx’s Ground unit, which handles e-commerce deliveries for many retailers, is expected to have benefited from higher residential delivery volume growth during the fiscal fourth quarter. Additionally, the Express segment, buoyed by international export and U.S. domestic-package volume growth, is anticipated to have generated higher revenues during the soon-to-be-reported quarter. As for the Freight segment, higher revenues per shipment and average daily shipments are likely to have boosted revenues in the fiscal fourth quarter, as was the case in the previous reported quarter.

Additionally, FedEx’s December 2020 acquisition of ShopRunner, boosting its e-commerce offerings, is likely to have contributed to the company’s top line.

However, the TNT Express integration expenses and costs incurred to support strong demand and expand services, as well as those associated with variable compensation and increased labor rates, might get reflected in the bottom line.

Earnings Whispers

The proven Zacks model predicts an earnings beat for FedEx this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: FedEx has an Earnings ESP of +2.78% as the Most Accurate Estimate is pegged at $5.13, higher than the Zacks Consensus Estimate of $4.99. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FedEx currently carries a Zacks Rank #2.

Highlights of Q3 Earnings

In the last reported quarter, FedEx delivered an earnings surprise of 8.1%. Quarterly revenues also outperformed the Zacks Consensus Estimate. Both top and bottom lines increased year over year, primarily owing to higher volumes, thanks to coronavirus-driven increased demand for e-commerce, as well as pricing initiatives across all transportation segments.

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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report

FedEx Corporation (FDX) : Free Stock Analysis Report

Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report

Atlas Air Worldwide Holdings (AAWW) : Free Stock Analysis Report

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