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FedEx Corporation (NYSE:FDX) Quarterly Earnings Preview

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  • Analysts predict an earnings per share (EPS) of $5.94 and projected revenue of approximately $21.84 billion for FedEx's upcoming quarterly earnings.
  • Despite challenges in the Express unit, FedEx's Q4 earnings are expected to rise by 9.8% year over year.
  • The Zacks Consensus Estimate for revenue is slightly lower at $21.7 billion, reflecting a 1.9% decrease from the previous year.

FedEx Corporation, listed as NYSE:FDX, is a global leader in transportation, e-commerce, and business services. The company is set to release its quarterly earnings on June 24, 2025. Analysts predict an earnings per share (EPS) of $5.94, with projected revenue of approximately $21.84 billion. FedEx's performance is closely watched, especially in comparison to competitors like UPS and DHL.

Despite a recent 1.5% downward revision, FedEx's Q4 earnings are expected to rise by 9.8% year over year. This increase is notable given the challenges faced by the Express unit, which is projected to see a 3.2% decline in revenues due to weak demand and low shipping volumes. The company's DRIVE efficiency program aims to mitigate these challenges by reducing salary and operating expenses.

The Zacks Consensus Estimate aligns with Wall Street's EPS prediction of $5.94, while revenue is slightly lower at $21.7 billion, reflecting a 1.9% decrease from the previous year. This downward revision in revenue estimates indicates a reassessment by analysts, which can significantly impact investor sentiment and stock performance.

FedEx's financial metrics provide insight into its market valuation. With a P/E ratio of 13.68, the market values its earnings moderately. The price-to-sales ratio of 0.61 suggests investors pay 61 cents for every dollar of sales. The enterprise value to sales ratio of 1.03 and the enterprise value to operating cash flow ratio of 12.55 highlight the company's valuation relative to its sales and cash flow.

The company's debt-to-equity ratio of 1.39 indicates a balanced use of debt and equity in financing its assets. FedEx's current ratio of 1.24 suggests it has sufficient liquidity to cover short-term liabilities. These financial metrics, along with the anticipated earnings report, will be crucial in determining FedEx's stock performance and investor confidence.

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