Citi sees some positives and negatives from FedEx print

Coming off the fiscal Q2 earnings call, Citi analyst Christian Wetherbee sees "some positives and some negatives" for FedEx. On the positive side, FedEx beat the $2.75 earnings per share guidance by a substantial amount with upside in Express and Ground, Wetherbee tells investors in a research note. That said, its fiscal Q3 earnings per share will likely be in the $2.55 range, below consensus estimates and worse than normal seasonality, implying a further deterioration in demand, particularly in the U.S., writes the analyst. He adds, "As we get closer to the bottom, we get the sense investors want to own FedEx, so while we still think it’s a bit early in the economic cycle to get materially more constructive, we expect relative outperformance near term." Wetherbee keeps a Neutral rating on FedEx with a $190 price target.