FedEx surges 11% after lifting guidance; analysts upgrade amid 'deeply-discounted valuation'

By Yasin Ebrahim and Senad Karaahmetovic -- FedEx lifted its guidance Thursday after reporting third quarter earnings that markedly beat expectations as its ongoing efforts to cut costs helped offset ongoing demand weakness.

FedEx Corporation (NYSE:FDX) shares are trading 11% higher in pre-open Friday following the report.

FedEx announced earnings per share of $3.41 on revenue of $22.20 billion. Analysts polled by Capital IQ anticipated EPS of $2.76 on revenue of $22.74B.

"Third quarter results were negatively affected by continued demand weakness, particularly at FedEx Express," the company said. Cost-cutting efforts, however, partly blunted the impact of weaker demand and inflation on operating income, it added.

"We've continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year," the company said.

In fiscal 2023, the company upgraded its guidance on adjusted EPS in the range of $13.80 to $14.40, up from $12.50 to $13.50 previously.

"Our improved earnings outlook demonstrates confidence in our ability to execute while managing the continued global volume softness we are experiencing across the business," the company said.

Stifel analysts raised the rating to Buy from Hold and the price target to $222 per share from the prior $171.

"Emerging consensus around an inventory bottom and pull forward with early signs of execution on two significant tranches of cost savings initiatives ($3.7bn and $4bn, respectively) present a compelling investment opportunity at the current, deeply-discounted valuation, in our view," the analysts wrote in a note.

Citi analysts raised the price target by $25 to $275 per share.

"Beyond the beat and F4Q raise, we think the potential earnings upside in F24 is quite large, as FedEx posted solidly better... With upcoming catalysts coming from DRIVE day on April 5th and a relatively low F4Q hurdle, we would expect strong upside follow through from FedEx shares," the analysts said.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: