We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FedEx (FDX) to Report Q2 Earnings: What's in the Offing?
Read MoreHide Full Article
FedEx Corporation (FDX - Free Report) is set to release second-quarter fiscal 2022 (ended Nov 30, 2021) results on Dec 16, after market close.
The Zacks Consensus Estimate for earnings in the fiscal second quarter has been revised 2.31% downward in the past 60 days. FedEx has a decent surprise history as its earnings outperformed the Zacks Consensus Estimate in two of the trailing four quarters, missing the mark in the other two.
Against this backdrop, let’s take a look at the factors that are likely to have impacted FDX’s second-quarter fiscal 2022 performance.
Akin to the fiscal first quarter, FedEx’s performance in second-quarter fiscal 2022 is likely to have been dented by supply-chain disruptions and a tight labor market. Escalated labor costs and network inefficiencies stemming from staffing shortages are likely to have hurt FDX’s fiscal second-quarter performance.
The Zacks Consensus Estimate for operating income at the Ground unit for the to-be-reported quarter is currently pegged at $520 million, indicating a sequential decrease of 22.5%. Segmental operating results are likely to have been affected by steep labor costs and staffing scarcity- led inefficiencies apart from high expansion-related costs.
However, buoyant e-commerce demand is likely to have boosted revenues at the Ground unit with the Thanksgiving holiday period providing an additional impetus. The Zacks Consensus Estimate for revenues in the fiscal second quarter at the FedEx Ground unit, which handles e-commerce deliveries for many retailers, stands at $7,908 million, indicating a sequential decrease of 2%.
The consensus mark for FedEx Express segment’s revenues is currently pegged at $11,237 million, suggesting a 2.5% increase, sequentially. Segmental revenues are likely to have been aided by growth in U.S. domestic express packages.
Earnings Whispers
The proven Zacks model does not predict 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 surprise. However, this is not the case here as shown below.
Earnings ESP: FedEx has an Earnings ESP of -1.27% as the Most Accurate Estimate is pegged at $4.18, lower than the Zacks Consensus Estimate of $4.23. 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 #3.
Highlights of Q1 Earnings
FedEx’s earnings (excluding 27 cents from non-recurring items) of $4.37 per share in first-quarter fiscal 2022 missed the Zacks Consensus Estimate of $4.96. The bottom line declined 10.27% year over year due to supply-chain disruptions and a tight labor market. Quarterly revenues in the quarter came in at $22,003 million, outperforming the Zacks Consensus Estimate of $21,806.3 million. The top line also increased 13.88% year over year, primarily owing to expanded volumes on the rise in demand for freight services.
Stocks to Consider
Here are some stocks worth considering from the same space as our model shows that these have the right combination of elements to beat on earnings this season.
MSC Industrial is set to report first-quarter fiscal 2022 results on Dec 22. The Zacks Consensus Estimate for earnings is pegged at $1.18 per share, which suggests an increase of 7.3% from the prior-year quarter’s reported figure. MSM’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters (reporting in-line results in the remaining one). The average beat is 1.9%.
CarMax (KMX - Free Report) has an Earnings ESP of +7.84% and is presently Zacks #3 Ranked. KMX is set to report third-quarter fiscal 2022 results on Dec 22.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.49 per share at CarMax, which suggests an increase of 4.9% from the prior-year quarter’s reported figure. KMX’s bottom line outshined the Zacks Consensus Estimate in three of the last four quarters (missing the consensus mark on one occasion). The average beat is 20.5%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
FedEx (FDX) to Report Q2 Earnings: What's in the Offing?
FedEx Corporation (FDX - Free Report) is set to release second-quarter fiscal 2022 (ended Nov 30, 2021) results on Dec 16, after market close.
The Zacks Consensus Estimate for earnings in the fiscal second quarter has been revised 2.31% downward in the past 60 days. FedEx has a decent surprise history as its earnings outperformed the Zacks Consensus Estimate in two of the trailing four quarters, missing the mark in the other two.
FedEx Corporation Price and EPS Surprise
FedEx Corporation price-eps-surprise | FedEx Corporation Quote
Against this backdrop, let’s take a look at the factors that are likely to have impacted FDX’s second-quarter fiscal 2022 performance.
Akin to the fiscal first quarter, FedEx’s performance in second-quarter fiscal 2022 is likely to have been dented by supply-chain disruptions and a tight labor market. Escalated labor costs and network inefficiencies stemming from staffing shortages are likely to have hurt FDX’s fiscal second-quarter performance.
The Zacks Consensus Estimate for operating income at the Ground unit for the to-be-reported quarter is currently pegged at $520 million, indicating a sequential decrease of 22.5%. Segmental operating results are likely to have been affected by steep labor costs and staffing scarcity- led inefficiencies apart from high expansion-related costs.
However, buoyant e-commerce demand is likely to have boosted revenues at the Ground unit with the Thanksgiving holiday period providing an additional impetus. The Zacks Consensus Estimate for revenues in the fiscal second quarter at the FedEx Ground unit, which handles e-commerce deliveries for many retailers, stands at $7,908 million, indicating a sequential decrease of 2%.
The consensus mark for FedEx Express segment’s revenues is currently pegged at $11,237 million, suggesting a 2.5% increase, sequentially. Segmental revenues are likely to have been aided by growth in U.S. domestic express packages.
Earnings Whispers
The proven Zacks model does not predict 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 surprise. However, this is not the case here as shown below.
Earnings ESP: FedEx has an Earnings ESP of -1.27% as the Most Accurate Estimate is pegged at $4.18, lower than the Zacks Consensus Estimate of $4.23. 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 #3.
Highlights of Q1 Earnings
FedEx’s earnings (excluding 27 cents from non-recurring items) of $4.37 per share in first-quarter fiscal 2022 missed the Zacks Consensus Estimate of $4.96. The bottom line declined 10.27% year over year due to supply-chain disruptions and a tight labor market. Quarterly revenues in the quarter came in at $22,003 million, outperforming the Zacks Consensus Estimate of $21,806.3 million. The top line also increased 13.88% year over year, primarily owing to expanded volumes on the rise in demand for freight services.
Stocks to Consider
Here are some stocks worth considering from the same space as our model shows that these have the right combination of elements to beat on earnings this season.
MSC Industrial Supply Company (MSM - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MSC Industrial is set to report first-quarter fiscal 2022 results on Dec 22. The Zacks Consensus Estimate for earnings is pegged at $1.18 per share, which suggests an increase of 7.3% from the prior-year quarter’s reported figure. MSM’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters (reporting in-line results in the remaining one). The average beat is 1.9%.
CarMax (KMX - Free Report) has an Earnings ESP of +7.84% and is presently Zacks #3 Ranked. KMX is set to report third-quarter fiscal 2022 results on Dec 22.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.49 per share at CarMax, which suggests an increase of 4.9% from the prior-year quarter’s reported figure. KMX’s bottom line outshined the Zacks Consensus Estimate in three of the last four quarters (missing the consensus mark on one occasion). The average beat is 20.5%.