FedEx through Analysts’ Eyes after Its Fiscal 4Q17 Results
Of the 27 analysts covering FedEx (FDX), nine (or 33%) have “strong buy” recommendations on the stock. Another 13 analysts have “buy” recommendations on the stock.
Earlier, we discussed FedEx’s (FDX) segmental and corporate operating margins in fiscal 4Q17. Now, let’s take a look at the company’s capital expenditure (capex).
In this article, we’ll focus on the results of FedEx’s (FDX) 2016 acquisition of TNT Express. Until now, FDX has reported TNT Express’s and FedEx Express’s operating results separately.
In this article, we’ll study the company’s Freight segment’s fiscal 4Q17. The segment’s revenue rose 5.7% to $1.7 billion in the quarter, compared to $1.6 billion in fiscal 4Q16.
FedEx’s (FDX) operating margin was 11.2% on an adjusted basis in fiscal 4Q17, representing a 0.4% fall on a YoY (year-over-year) basis.
In fiscal 4Q17, FedEx’s (FDX) Express segment’s total revenue was $7.1 billion, compared to $6.7 billion in fiscal 4Q16, a year-over-year (or YoY) rise of 6.9%.
In this article, we’ll look at FedEx’s Ground segment’s performance in fiscal 4Q17. FedEx Ground’s revenue rose 9.1% to $4.6 billion in the quarter, compared to $4.2 billion in fiscal 4Q16.
On June 20, 2017, parcel delivery and logistics giant FedEx (FDX) announced its fiscal 4Q17 results. The company reported adjusted EPS (earnings per share) of $4.25.
In 3Q17, the company incurred a capex of $1.1 billion, which represents 7.4% of the 3Q17 total revenues of ~$15.0 billion.
Analysts’ recommendations have changed in FedEx’s (FDX) favor after its 3Q17 results.
The FedEx Ground segment’s revenues rose 6% from $4.4 billion in 3Q16 to $4.7 billion in fiscal 3Q17.
The FedEx Freight segment revenues rose 3.1% from $1.4 billion in 3Q16 to $1.5 billion in fiscal 3Q17.
FedEx’s (FDX) overall operating margin on a reported basis was 6.8% in 3Q17, almost flat on a year-over-year basis.
In 3Q17, FedEx’s (FDX) Express segment reported revenue of $6.7 billion as compared to $6.5 billion in 3Q16.
FedEx (FDX) reported adjusted EPS (earnings per share) of $2.35 in 3Q17, missing analysts’ consensus estimate of $2.61 per share by 10.1%.
UPS expects its International segment’s revenues to grow 2%–4% in 2017.
In 4Q16, UPS’s International segment’s revenue rose 2.6% to ~$2.7 billion from ~$2.6 billion in 4Q15.
In 4Q16, United Parcel Service (UPS) just missed analysts’ revenue estimates by 0.5%.
In 4Q16, UPS’s Ground Service revenues saw remarkable growth, rising 7.1% on a year-over-year basis—the highest among all three subsegments.
United Parcel Service (UPS) reported its 4Q16 earnings on January 31, 2017. The parcel delivery giant reported a loss of $0.27 per share in 4Q16.