15 Mar

FedEx’s Q3 2019 Earnings Are Likely to Fall YoY

WRITTEN BY Andrew Brunton

Q3 earnings expectations

FedEx (FDX) is slated to report its fiscal 2019 third-quarter results on March 19. The courier and package delivery company has a mixed earnings surprise history, as it has surpassed analysts’ expectations in five out of eight trailing quarters and missed expectations three times. Additionally, the company reported double-digit earnings growth in each of the last four quarters.

FedEx’s Q3 2019 Earnings Are Likely to Fall YoY

However, analysts are expecting the company to report a YoY decline for the to-be-reported quarter. For the third quarter, Wall Street analysts are projecting adjusted EPS of $3.17 for FedEx, implying a YoY decline of 14.8%.

Factors at play

Analysts expect FedEx’s revenue growth to slow down in the third quarter on concerns over the slowing global economy. They anticipate the company’s sales to rise 7% on a YoY basis to $17.7 billion. The growth rate is significantly lower than the over 9% growth it has reported in the previous five quarters.

During FedEx’s second-quarter earnings release, the company’s CFO, Alan Graf, said, “Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near-term.” He noted that weakness in the Chinese economy due to trade disputes, protests in France, Brexit uncertainty, and contraction in Germany’s GDP is hurting the company’s international business.

Going forward, analysts believe higher costs due to increased investments in facility upgrades and TNT Express’s integration-related expenses could weigh on FedEx’s third-quarter bottom-line results. Additionally, the company’s earlier announcement of voluntary buyouts of US-based employees is also likely to increase its third-quarter pre-tax expenses.

Peers’ expectations

Most of FedEx’s peers (IYT) plan to report their fourth-quarter results in April. Analysts’ fourth-quarter revenue expectations for UPS (UPS), Old Dominion Freight Lines (ODFL), and XPO Logistics (XPO) project YoY growth of 5.4%, 15.2%, and 4.6%, respectively. The earnings estimates for UPS, Old Dominion Freight Lines, and XPO Logistics project a YoY increase of 16.2%, 63.9%, and 60%, respectively.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction

WRITTEN BY Adam Jones

The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.

172.31.16.229