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The Zacks Consensus Estimate for earnings in the fiscal third quarter has been revised 5.1% upward in the past 90 days. FDX has a mixed surprise record with its earnings per share having outperformed the Zacks Consensus Estimate in two of the preceding 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 FedEx’s third-quarter fiscal 2022 performance.
We expect favorable pricing and a strong demand scenario owing to the resumption of economic activities to have aided FedEx’s performance in the fiscal third quarter. Upbeat performance in the holiday season is likely to lift results.
The coronavirus-induced rise in online shopping is expected to have aided the overall shipment volumes in the to-be-reported quarter. The Ground unit, which handles e-commerce deliveries for many retailers, is expected to have benefited from higher residential delivery volume growth. The Zacks Consensus Estimate for Ground revenues in the fiscal third quarter suggests a 10.8% uptick from the year-ago fiscal quarter’s reported number.
On the flip side, adverse weather conditions across the United States and the omicron-led labor-crunch might have dented FDX’s overall performance. This is likely to have caused service delays.
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 +2.26% as the Most Accurate Estimate is pegged at $4.81, higher than the Zacks Consensus Estimate of $4.70. 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 Q2 Earnings
In the last reported quarter, FedEx delivered an earnings surprise of 14.18%. Quarterly revenues also outperformed the Zacks Consensus Estimate. Both the top and the bottom line increased year over year, primarily owing to a robust performance of the FedEx Ground segment.
Recap of Recent Results From the Industry
Below we present the results of United Parcel Service (UPS - Free Report) and Air Transport Services (ATSG - Free Report) , which belong to the same industry as FedEx.
UPS, currently carrying a Zacks Rank of 3, reported fourth-quarter 2021 earnings (excluding 7 cents from non-recurring items) of $3.59 per share, beating the Zacks Consensus Estimate of $3.11. The bottom line jumped 35% year over year with strong performances across all segments.
Quarterly revenues of $27,771 million also outperformed the Zacks Consensus Estimate of $27,179.6 million. The top line increased 11.5% year over year, driven by higher shipping rates and upbeat e-commerce demand. Shares of UPS have appreciated 6.4% in the past six months.
Air Transport Services’ fourth-quarter 2021 earnings (excluding 8 cents from non-recurring items) of 52 cents per share matched the Zacks Consensus Estimate. The bottom line improved 36.8% year over year on the back of an impressive revenue performance.
Revenues at Air Transport Services not only rose 20.8% year over year to $482 million but also surpassed the Zacks Consensus Estimate of $446 million. The top line was boosted by higher revenues from both segments. Shares of ATSG have appreciated 17.7% in the past six months. ATSG currently carries a Zacks Rank #2.
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FedEx (FDX) to Report Q3 Earnings: A Beat in the Offing?
FedEx Corporation (FDX - Free Report) is set to release third-quarter fiscal 2022 (ended Feb 28, 2022) results on Mar 17, after market close.
The Zacks Consensus Estimate for earnings in the fiscal third quarter has been revised 5.1% upward in the past 90 days. FDX has a mixed surprise record with its earnings per share having outperformed the Zacks Consensus Estimate in two of the preceding 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 FedEx’s third-quarter fiscal 2022 performance.
We expect favorable pricing and a strong demand scenario owing to the resumption of economic activities to have aided FedEx’s performance in the fiscal third quarter. Upbeat performance in the holiday season is likely to lift results.
The coronavirus-induced rise in online shopping is expected to have aided the overall shipment volumes in the to-be-reported quarter. The Ground unit, which handles e-commerce deliveries for many retailers, is expected to have benefited from higher residential delivery volume growth. The Zacks Consensus Estimate for Ground revenues in the fiscal third quarter suggests a 10.8% uptick from the year-ago fiscal quarter’s reported number.
On the flip side, adverse weather conditions across the United States and the omicron-led labor-crunch might have dented FDX’s overall performance. This is likely to have caused service delays.
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 +2.26% as the Most Accurate Estimate is pegged at $4.81, higher than the Zacks Consensus Estimate of $4.70. 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 Q2 Earnings
In the last reported quarter, FedEx delivered an earnings surprise of 14.18%. Quarterly revenues also outperformed the Zacks Consensus Estimate. Both the top and the bottom line increased year over year, primarily owing to a robust performance of the FedEx Ground segment.
Recap of Recent Results From the Industry
Below we present the results of United Parcel Service (UPS - Free Report) and Air Transport Services (ATSG - Free Report) , which belong to the same industry as FedEx.
UPS, currently carrying a Zacks Rank of 3, reported fourth-quarter 2021 earnings (excluding 7 cents from non-recurring items) of $3.59 per share, beating the Zacks Consensus Estimate of $3.11. The bottom line jumped 35% year over year with strong performances across all segments.
Quarterly revenues of $27,771 million also outperformed the Zacks Consensus Estimate of $27,179.6 million. The top line increased 11.5% year over year, driven by higher shipping rates and upbeat e-commerce demand. Shares of UPS have appreciated 6.4% in the past six months.
Air Transport Services’ fourth-quarter 2021 earnings (excluding 8 cents from non-recurring items) of 52 cents per share matched the Zacks Consensus Estimate. The bottom line improved 36.8% year over year on the back of an impressive revenue performance.
Revenues at Air Transport Services not only rose 20.8% year over year to $482 million but also surpassed the Zacks Consensus Estimate of $446 million. The top line was boosted by higher revenues from both segments. Shares of ATSG have appreciated 17.7% in the past six months. ATSG currently carries a Zacks Rank #2.