FedEx (NYSE:FDX) Shares Gap Up After Earnings Beat

FedEx Corporation (NYSE:FDX) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $356.11, but opened at $380.82. FedEx shares last traded at $363.7220, with a volume of 2,339,451 shares traded.

The shipping service provider reported $5.25 earnings per share for the quarter, topping the consensus estimate of $4.12 by $1.13. The firm had revenue of $24 billion during the quarter, compared to analysts’ expectations of $23.44 billion. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The company’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.51 earnings per share.

FedEx Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Monday, March 9th will be given a $1.45 dividend. The ex-dividend date of this dividend is Monday, March 9th. This represents a $5.80 dividend on an annualized basis and a yield of 1.6%. FedEx’s payout ratio is 31.97%.

Trending Headlines about FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance raise — FedEx reported $5.25 EPS on $24B revenue, topping consensus and raised FY26 profit outlook; investors cheered resilient demand and a stronger-than-expected holiday peak. FedEx shares surge as investors cheer resilient demand, higher profit forecast
• Positive Sentiment: Analyst upgrades and higher price targets — TD Cowen raised its price target to $426 and upgraded to Buy; other firms (e.g., JPMorgan) also raised targets recently, supporting upside expectations.
• Positive Sentiment: Strategic execution — Management reaffirmed key actions (including the freight spin?off plan) and emphasized cost controls and yield improvement, which support margin outlook. FedEx Tops Q3 Estimates, Freight Spin-Off Remains On Track
• Neutral Sentiment: Demand and geopolitical risks — CEO said global demand has held through early March despite the Iran war; fuel surcharges are cushioning cost increases but guidance assumes no further major disruptions. This is reassuring but leaves exposure if the conflict worsens. FedEx sees global demand holding amid Iran war, raises profit outlook
• Neutral Sentiment: Network adjustments — FedEx is closing nine New York parcel centers as it optimizes capacity; this may lower costs long term but could cause near?term disruption and execution risk. FedEx to shutter 9 New York parcel centers
• Negative Sentiment: Analyst downgrade — Zacks moved FDX from “strong?buy” to “hold,” flagging valuation and near?term risks despite the beat; some analysts warn the stock’s run-up makes valuation more stretched. Zacks.com
• Negative Sentiment: Safety/regulatory risk — The NTSB is investigating a close call between FedEx and an Alaska Airlines jet at Newark; while not a financial issue now, it introduces operational/regulatory scrutiny. NTSB investigating close call between FedEx, Alaska Airlines jets

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. UBS Group lifted their price target on shares of FedEx from $314.00 to $412.00 and gave the stock a “buy” rating in a research note on Wednesday, February 4th. Oppenheimer restated a “market perform” rating on shares of FedEx in a research report on Friday, December 19th. BMO Capital Markets raised their target price on shares of FedEx from $290.00 to $400.00 and gave the stock a “market perform” rating in a report on Friday, February 13th. Royal Bank Of Canada downgraded shares of FedEx to a “sector perform” rating in a research report on Wednesday, December 17th. Finally, Sanford C. Bernstein reissued an “outperform” rating and set a $457.00 price target on shares of FedEx in a report on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $376.33.

Hedge Funds Weigh In On FedEx

Institutional investors and hedge funds have recently made changes to their positions in the business. OneAscent Financial Services LLC increased its holdings in FedEx by 1.7% during the fourth quarter. OneAscent Financial Services LLC now owns 1,699 shares of the shipping service provider’s stock valued at $491,000 after buying an additional 29 shares during the last quarter. Arete Wealth Advisors LLC boosted its stake in shares of FedEx by 1.7% during the 4th quarter. Arete Wealth Advisors LLC now owns 1,778 shares of the shipping service provider’s stock worth $514,000 after acquiring an additional 30 shares during the last quarter. LRI Investments LLC boosted its stake in shares of FedEx by 5.2% during the 4th quarter. LRI Investments LLC now owns 632 shares of the shipping service provider’s stock worth $183,000 after acquiring an additional 31 shares during the last quarter. Cary Street Partners Investment Advisory LLC grew its position in shares of FedEx by 11.9% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 292 shares of the shipping service provider’s stock valued at $84,000 after acquiring an additional 31 shares during the period. Finally, Legacy Bridge LLC grew its position in shares of FedEx by 33.0% during the 4th quarter. Legacy Bridge LLC now owns 133 shares of the shipping service provider’s stock valued at $38,000 after acquiring an additional 33 shares during the period. Hedge funds and other institutional investors own 84.47% of the company’s stock.

FedEx Price Performance

The firm has a 50 day moving average price of $350.29 and a 200 day moving average price of $289.94. The stock has a market capitalization of $85.06 billion, a PE ratio of 19.86, a price-to-earnings-growth ratio of 1.66 and a beta of 1.29. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72.

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.