Delivery giant FedEx (NYSE:FDX) landed a serious win on Thursday with its earnings report. But it’s kept that winning streak alive into Friday afternoon’s trading, as investors pushed shares up over 7% in the period.
Admittedly, the third-quarter earnings report wasn’t all good news. Both the Ground and Freight segments took a little bit of a beating, thanks to a combination of a declining overall economy and some inflationary issues that made a bad situation that much worse.
However, that revenue decline was offset by DRIVE initiatives, a series of cost-saving measures designed to keep FedEx up and running. DRIVE calls on FedEx to turn to automation and some overall improvements in infrastructure to ultimately balance the profit equation accordingly.
FedEx Express Pilots Seek a New Contract
FedEx’s attempt to hold the line on costs was probably never going to come without some fallout, and that fallout drifted overhead today. FedEx Express pilots, represented by the Air Line Pilots Association (ALPA), are on the picket lines just after that earnings release, seeking a new contract to replace the current one, which is out of date.
Negotiations have been going on since May 2021, even going to federal mediation in October 2022. So far, no contract has been reached, and the third anniversary will be coming up in a little over a month.
Is FedEx Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FDX stock based on 11 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 33.46% rally in its share price over the past year, the average FDX price target of $307.50 per share implies 8.49% upside potential.
