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.
FDX has a decent surprise record with its earnings per share surpassing the Zacks Consensus Estimate in two of the preceding four quarters (missed twice). The average beat is 8.8%.
The Zacks Consensus Estimate for earnings per share has been revised 1.3% upward in the past 60 days.
Against this backdrop, let’s look into the factors that are likely to have impacted FedEx’s to-be-reported quarter’s performance.
Akin to fiscal third quarter, we expect persistent demand weakness, especially at FedEx Express, to have dented performance in the to-be-reported quarter owing to lower global volumes. The Zacks Consensus Estimate for segmental revenues suggests a 9.5% decline from the year-ago fiscal quarter’s reported number.
Increased purchased transportation rates and lower package volume are likely to have affected the quarterly performance of the FedEx Ground segment. The Zacks Consensus Estimate for the segment’s revenues implies a 1.6% decrease from the prior-year fiscal quarter’s reported number.
Softness pertaining to average daily shipments are likely to have hurt performance of the FedEx Freight segment as well. The Zacks Consensus Estimate for segmental revenues indicates a 5.4% fall from the year-earlier fiscal quarter’s reported number.
However, cost-control actions are likely to have aided FDX’s performance in the quarter under review.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively 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 an earnings surprise. However, that is not the case here.
Earnings ESP: FedEx has an Earnings ESP of -3.20% as the Most Accurate Estimate is pegged at $4.67, 16 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FedEx's third-quarter fiscal 2023 (ended Feb 28) earnings (excluding 37 cents from non-recurring items) of $3.41 per share beat the Zacks Consensus Estimate of $2.67. Revenues of $22,169 million fell short of the Zacks Consensus Estimate of $23,643.9 million and decreased 6.4% from the year-ago fiscal quarter’s reported figure. The top line was hurt by global volume softness at each of FDX’s transportation segments.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decrease in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Image: Bigstock
FedEx (FDX) to Report Q4 Earnings: What's in the Offing?
FedEx Corporation (FDX - Free Report) is set to release fourth-quarter fiscal 2023 (ended May 31) results on Jun 20, 2023 after market close.
FDX has a decent surprise record with its earnings per share surpassing the Zacks Consensus Estimate in two of the preceding four quarters (missed twice). The average beat is 8.8%.
The Zacks Consensus Estimate for earnings per share has been revised 1.3% upward in the past 60 days.
FedEx Corporation Price and EPS Surprise
FedEx Corporation price-eps-surprise | FedEx Corporation Quote
Against this backdrop, let’s look into the factors that are likely to have impacted FedEx’s to-be-reported quarter’s performance.
Akin to fiscal third quarter, we expect persistent demand weakness, especially at FedEx Express, to have dented performance in the to-be-reported quarter owing to lower global volumes. The Zacks Consensus Estimate for segmental revenues suggests a 9.5% decline from the year-ago fiscal quarter’s reported number.
Increased purchased transportation rates and lower package volume are likely to have affected the quarterly performance of the FedEx Ground segment. The Zacks Consensus Estimate for the segment’s revenues implies a 1.6% decrease from the prior-year fiscal quarter’s reported number.
Softness pertaining to average daily shipments are likely to have hurt performance of the FedEx Freight segment as well. The Zacks Consensus Estimate for segmental revenues indicates a 5.4% fall from the year-earlier fiscal quarter’s reported number.
However, cost-control actions are likely to have aided FDX’s performance in the quarter under review.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively 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 an earnings surprise. However, that is not the case here.
Earnings ESP: FedEx has an Earnings ESP of -3.20% as the Most Accurate Estimate is pegged at $4.67, 16 cents lower than the Zacks Consensus Estimate. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q3 Earnings
FedEx's third-quarter fiscal 2023 (ended Feb 28) earnings (excluding 37 cents from non-recurring items) of $3.41 per share beat the Zacks Consensus Estimate of $2.67. Revenues of $22,169 million fell short of the Zacks Consensus Estimate of $23,643.9 million and decreased 6.4% from the year-ago fiscal quarter’s reported figure. The top line was hurt by global volume softness at each of FDX’s transportation segments.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decrease in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.