# FedEx Set to Report Q4 Earnings Amid Market Challenges
FedEx Corporation (FDX), headquartered in Memphis, Tennessee, is a leading transportation, e-commerce, and business services entity. The company, with a market capitalization of $50.3 billion, offers a wide range of services including express shipping, ground delivery, freight transportation, logistics, and supply chain management. FedEx plans to announce its fiscal Q4 earnings for 2025 after market close on Tuesday, June 24.
Analyst Expectations for Q4
In anticipation of this announcement, analysts predict that FedEx will report earnings of $6.03 per share. This marks an 11.5% increase compared to $5.41 per share from the same quarter last year. FedEx has exceeded Wall Street’s earnings estimates in two out of the last four quarters, while falling short on the remaining occasions. In Q3, the company reported earnings per share (EPS) of $4.51, 3% below forecasts.
Fiscal Year 2025 Projections
Looking ahead, analysts forecast a profit of $18.21 per share for fiscal 2025, representing a 2.3% rise from $17.80 in fiscal 2024. Expectations for further growth remain strong, with EPS anticipated to increase by 8.6% to $19.78 for fiscal 2026.
Recent Stock Performance
Over the past year, FedEx shares have experienced a decline of 21.1%. This performance falls significantly short of the S&P 500 Index’s increase of 8.7% and the Industrial Select Sector SPDR Fund’s growth of 5.5%. Following the mixed results in Q3, where revenue rose 1.9% to $22.2 billion—surpassing estimates by 1.2%—the company’s shares dropped by 6.5% in the next trading session. The revenue growth was largely driven by a 2.7% increase in the express segment, which helped mitigate losses in the freight segment.
Despite a year-over-year adjusted EPS increase of 16.8% to $4.51, investors were disappointed as this figure was also 3% below Wall Street expectations. FedEx subsequently revised its fiscal 2025 revenue and adjusted EPS guidance downwards, citing ongoing weakness and uncertainty in the U.S. industrial economy. The new guidance indicates flat to slightly declining revenue year-over-year and an adjusted EPS projected between $18.00 and $18.60.
Wall Street Analysts’ Ratings
Wall Street analysts hold a moderately optimistic outlook for FedEx stock, currently assigning a “Moderate Buy” rating. Out of 30 analysts, 19 recommend “Strong Buy,” one suggests “Moderate Buy,” eight indicate “Hold,” and two rate it as “Strong Sell.” The average price target for FedEx stands at $284.34, suggesting a potential upside of 35.5% from current price levels.
On the date of publication, Neharika Jain did not hold positions in any of the securities mentioned in this article. All information in this article is for informational purposes only.
The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
