Quick Read – FDX beat revenue by ~$1 billion and EPS estimates, yet sold off 9% as traders anchored to a 22% operating income drop. – WTI crude spiked to $115 per barrel, inflating FedEx’s surcharge revenue and costs simultaneously, compressing margins without reflecting true…
siness deterioration. – FedEx’s 11% revenue growth guidance topped the analyst’s 7% model, but a fiscal year-end shift to December made the EPS guide look soft against a stale $19.86 consensus. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and FedEx didn’t make the cut. Grab the names FREE today
The day after FedEx (NYSE:FDX) reported, the stock is down again, and an analyst on CNBC’s Closing Bell Overtime spent his segment trying to convince viewers that the people selling are reading the wrong line of the income statement. The shares finished the prior session lower and slid another 1.83% in Wednesday’s session to $311.43, after dropping roughly 9.3% in the first hour following the 8-K hitting Tuesday after the close. That gives you a stock that is up 70% over the past year and is still up sharply year to date, now marked down on a quarter most of the sell side spent the prior week telling clients would be a beat.
The revenue beat the analyst says is getting buried The analyst’s pitch starts with the headline numbers. Revenue of $25 billion came in roughly a billion dollars ahead of consensus, adjusted EPS of $6.31 topped the Street by $0.36, and Federal Express segment revenue grew 14% year over year to $21.57 billion. International priority package revenue grew 20%, with yield up 16% to $71.12.