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FedEx Surpassed Earnings Estimate in Fiscal 3Q18, Stock Rose 1%

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Mar. 22 2018, Updated 12:53 p.m. ET

FedEx’s 3Q18 earnings

FedEx (FDX), the Memphis-headquartered worldwide logistics mammoth, announced its fiscal 3Q18 earnings on March 20, 2018. It posted adjusted EPS (earnings per share) of $3.72, exceeding Thomson Reuters–surveyed analysts’ estimate of $3.11 by nearly 20%. On a YoY (year-over-year) basis, FedEx’s fiscal 3Q18 adjusted earnings skyrocketed 58.3% from $2.35 per share compared to its last fiscal year.

Reported earnings were $7.59 per share in fiscal 3Q18, up 150% from $2.07 per share in fiscal 3Q17. Fiscal 2018’s quarterly consolidated earnings were adjusted to exclude the benefit of ~$1.2 billion of reductions in FedEx’s net US deferred tax liability. That was the result of the reduced statutory rate in accordance with the Tax Cuts and Jobs Act.

Excluding the year-end mark-to-market pension accounting adjustments, FDX’s earnings are anticipated to be $17.90–$18.30 per diluted share for fiscal 2018. The company also expects 4Q18 operating profit to rise YoY for the company and all its transportation segments.

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FedEx stock price performance

Parcel delivery giants FedEx and United Parcel Service (UPS) have worldwide operations. Hence, their earnings provide investors with the condition of the economy. On March 20, 2018, FedEx stock rose ~1% and closed at $251.99. In the last year, FedEx stock has returned ~31%, whereas the SPDR S&P 500 ETF (SPY) has returned 15.9%. The stock of archrival United Parcel Service delivered -1.4%. Let’s compare how the LTL (less-than-truckload) peer group stocks reacted to FedEx’s fiscal 3Q18 earnings on March 20, 2018.

  • Old Dominion Freight Lines (ODFL): rose 1.5%
  • XPO Logistics (XPO): rose 1.5%
  • Saia (SAIA): rose 1.8%
  • YRC Worldwide (YRCW): rose 0.1%

Series highlights

In this FedEx fiscal 3Q18 post-earnings series, we’ll assess its division results. We’ll end the series by seeing how analysts are rating FedEx and comparing the company to its peer group of LTL carriers.

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