FedEx 1st-quarter results mixed, lowers fiscal 2016 outlook

On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, The Securities and Exchange Commission has divulged that Walsh Paul S, director of Fedex Corp, had unloaded 4,400 shares at an average price of $173.55 in a transaction dated on May 8, 2015. The firm has a market capitalization of $42.24 billion and a P/E ratio of 40.98.

As impressive as both the earnings and revenue numbers appear, given the size of FedEx and its $43 billion market cap, the company is still flying higher.

Analysts at Robert W. Baird lowered their price target on shares of FedEx (NYSE:FDX) from $200.00 to $195.00 in a report issued on Friday, StockTargetPrices.com reports.

Fedex Corporation (NYSE:FDX) traded down -2.95% on 17 September, hitting $149.46. Six analysts surveyed by Zacks expected $12.23 billion.

FedEx Ground reported quarterly revenue of $3.83 billion, up 29% from last year’s $2.96 billion.

FedEx Corporation (NYSE:FDX) has been identified as a value stock according to Zacks Research.

Meanwhile, FedEx is maintaining unchanged its forecasted capital expenditures for fiscal year 2016, at $4.6 billion as they keep their hopes on the U.S economy to grow 2.5 percent this year and 2.8 percent in 2016, fueled by consumer spending.

“Earnings per share, the index by which firms are measured, failed to meet most street estimates for the quarter”.

FedEx Corp. this week announced higher service fees and its base rate change for 2016. Operating margin for the quarter came in at 9.3%, reflecting an increase of 20 basis points (bps) YoY. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share.

For the year ending May 31, FedEx singled out the so-called less-than-truckload shipping segment, a business that places goods from more than one customer on each trailer. The Company offers its services through companies representing four business segments: FedEx Ground, FedEx Express, FedEx Freight and FedEx Services.

During the quarter, the company acquired 1.1 million shares of FedEx common stock.

The deal will not only benefit FedEx’s business in Europe, but is also set to increase reach and offerings in Latin America, where FedEx and TNT have invested heavily over the past 6 years. FedEx only added its home delivery service in 2000 and has been rapidly expanding its ground network to accommodate the big increase in e-commerce packages. Founded as an air express company, FedEx is relatively new to ground delivery compared with century-old rival United Parcel Service Inc. FedEx also said it was increasing the surcharge on packages that exceed maximum dimensions effective November . 2.