Shares of FedEx (
) are trading nicely higher Monday afternoon ahead of the company's
fourth-quarter 2012 earnings report, expected out before the market
opens on Tuesday. While the Dow Jones and S&P 500 are down 36
points and up nearly 1 point, respectively, FedEx shares are up
almost 1 percent.
Analysts are looking for quarterly earnings of $1.94 per share on
sales of $11.13 billion. FedEx reported third-quarter 2012 EPS of
$1.65 and fourth-quarter 2011 earnings of $1.75 per share. Sales
totaled $10.56 billion last quarter and $10.60 billion in the same
quarter last year.
According to StreetInsider.com's
page, FedEx has beat the Street's earnings estimates by nearly 7
percent over the last six quarters.
Data from Bloomberg shows 17 analyst firms with a Buy rating on
FedEx shares, six with a Hold, and none suggesting to Sell the
stock ahead of the results. Analysts' price targets range from $85
- Sees possible upside to fourth-quarter figures "given the
tailwind from falling fuel prices and improved profitability at
Freight." The firm says investors will be looking closely at the
company's FY13 guidance, which is places in a wide range of
$7-$8. Deutsche Bank sees the restructuring of FedEx's Domestic
Express unit helping the annual outlook. The wide FY13 range will
likely be attributed to the uncertain economic backdrop.
Maintains Buy rating and $123 price target into the report.
- Amid some positives (lower fuel prices, easier international
comps) and negatives (pension expense headwind), the firm
believes the overall story "has room for upside with cost savings
from a restructuring as an important positive." JPMorgan also
noted expectations which are low amid the macro environment.
While the firm does not expect many details to FedEx's
restructuring program, "FDX is likely to provide sufficent
information along with a strong first step (plane retirements) so
that investors can begin to give them some credit regarding
future costs savings which could provide a boost to the stock."
Maintains Overweight and $105 price target.
FedEx generally reports right at or just a minute after 7:30am ET.
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