Shares of delivery services company FedEx (NYSE:FDX) plunged in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $3.99, which missed analysts’ consensus estimate of $4.19 per share.
Sales decreased by 2.6% year-over-year, with revenue hitting $22.2 billion. This missed analysts’ expectations by $230 million.
Looking forward, management now expects revenue in FY 2024 to decline by a low mid-single-digit percentage versus expectations of flat growth. Furthermore, adjusted earnings per share are anticipated to land between $17 and $18.50. For reference, analysts were expecting an adjusted EPS of $18.19.
Is FedEx a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on FDX stock based on 16 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 74% rally in its share price over the past year, the average FDX price target of $303.94 per share implies 8.55% upside potential.
