FedEx Stock Dips 6% Despite Q4 Beating Revenue and Earnings Estimates

Key Stats for FedEx Stock

• Pre-market price change for FedEx: -6%
• $FDX Share Price as of Jun. 23: $317
• 52-Week High: $414
• $FDX Stock Price Target: $346

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

FedEx (FDX) stock slipped roughly 6% in after-hours trading on Tuesday, even though the company beat Wall Street on both revenue and earnings.

• Adjusted EPS came in at $6.31, topping the $5.96 estimate.
• Revenue hit $25.01 billion, well ahead of the $24.04 billion analysts expected.
• For the full fiscal year, FedEx reported $94.7 billion in revenue, up from $87.9 billion the prior year.

So why did FedEx stock fall?

One likely reason is fuel costs. FedEx saw fuel expenses jump 66% year-over-year, rising from $864 million to $1.43 billion.

Executives said demand hasn’t been hurt by higher fuel prices, and the company’s surcharge structure helped offset the cost.

But the spike was hard to ignore.

This was also the final earnings report to include FedEx Freight, which spun off into a separate public company on June 1.

As part of the spinoff, FedEx Freight paid roughly $4.1 billion in cash back to FedEx Corporation — a meaningful one-time benefit. Investors may be recalibrating expectations now that this segment is gone.

See analysts’ growth forecasts and price targets for FedEx stock (It’s free) >>>

What the Market Is Telling Us About FedEx Stock

Even with a strong beat, FedEx stock faced after-hours selling pressure. That’s not unusual when results include spinoff-related noise or one-time items that make the numbers harder to read.

The underlying business looks solid.

• Domestic volume was up 3%.
• U.S. pricing rose 10%.
• CEO Raj Subramaniam called the results proof that their strategy is working, pointing to strong free cash flow and results that “far exceeded” initial guidance.

Looking ahead, FedEx guided for 11% revenue growth and full-year adjusted EPS of $16.90 to $18.10 — strong numbers by any measure.

FedEx stock may be worth watching here.

The dip on a beat could be a short-term overreaction, especially given the earnings momentum the company has built over the past several quarters.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does FedEx Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

1. Revenue Growth
2. Operating Margins
3. Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!