(Part 2 of 5) Earnings Calendar (15Dec25) - What does FedEx say about the outlook?
Earnings Calendar (15Dec25)
I’m interested in the coming earnings of Jabil, Micron, Accenture, FactSet, Nike, FedEx, Blackberry and Carnival.
Let us look into FedEx.
FedEx Overview
Stock Performance and Analyst Ratings
The stock price for FedEx has experienced a modest increase of 2.2% compared to the same period last year. Technical analysis currently indicates a “Strong Buy” recommendation, reflecting positive momentum in the stock’s performance. Furthermore, analyst sentiment supports a “Buy” rating, suggesting continued confidence in the company’s outlook. Despite this optimism, the consensus target price is set at $282.54, which implies a potential downside of approximately 0.63% from the current trading level.
Revenue Growth
FedEx has demonstrated significant revenue growth over the past decade. The company’s revenue increased from $50.3 billion in 2016 to $87.9 billion in 2025. While this 2025 figure is impressive, it does not surpass the highest annual revenues recorded in 2022 and 2023.
Operating Profit
The operating profit for FedEx grew from $3 billion in 2016 to $5.29 billion in 2025. The company’s record annual operating profit was achieved in 2023, reaching $6.5 billion.
Earnings Per Share (EPS)
Earnings per share for FedEx have also seen remarkable growth, rising from $6.51 in 2016 to $16.81 in 2025. The highest recorded EPS was $19.45 in 2021, according to independent global investment data.
Dividends
FedEx has steadily increased its dividends per share, growing from $1.00 in 2016 to $5.52 in 2025. This reflects the company’s commitment to returning value to its shareholders.
Valuation and Margins
FedEx’s price-to-earnings (P/E) ratio stands at an attractive 16.3. Over the past ten years, the company has maintained a median gross profit margin of 21.5% and a free cash flow (FCF) margin of 2.4%.
Valuation of Competitors
When assessing FedEx’s valuation, it is helpful to compare the company’s price-to-earnings (P/E) ratio with those of its primary competitors and the sector averages. Major competitors in the air freight and logistics industry include UPS, DHL, Expeditors International (EXPD), and C.H. Robinson Worldwide (CHRW). Their respective P/E ratios are as follows:
· UPS: 15.60
· DHL: 15.38
· EXPD: 24.70
· CHRW: 31.84
The sector average P/E ratio for air freight and logistics is approximately 18.8. Additionally, the average P/E ratio for the integrated freight and logistics segment is about 27.5. These figures provide important context for evaluating FedEx’s market valuation and competitiveness within the industry.
FedEx Valuation Considerations and Outlook
When evaluating FedEx’s stock for inclusion in our portfolio, it is important to note that FedEx appears somewhat more expensive compared to its major competitors. This higher valuation could be significant as we consider portfolio diversification and risk management strategies.
What remains essential, however, is to monitor FedEx’s outlook. The company’s performance may serve as an indicator for the broader global economic trends, making its trajectory especially relevant for strategic investment decisions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- BingGibbon·12-15 16:57FedEx's outlook crucial for global economic pulse. Valuation premium but strategic hold. Carnival's performance equally telling. 🧐LikeReport