On June 27, FedEx fell 3.04% in regular trading, trading at $319.14/share, with turnover of $4.46 billion. The stock continues to face selling pressure following its fiscal Q4 earnings release earlier this week.
While FedEx reported adjusted EPS of $6.31 and revenue of $25 billion — both exceeding consensus expectations — the core express segment operating margin contracted from 8.4% to 7.7% year over year, as fuel costs surged 66% to $1.43 billion. The company also recorded a $23 million non-cash impairment charge related to the permanent retirement of 10 aircraft. Most critically, full-year adjusted EPS guidance of $16.90 to $18.10 came in well below the analyst consensus of $19.86, with the fiscal year reporting transition and freight spinoff adding complexity to comparisons. Multiple analysts, including UBS and Stifel, have lowered their price targets, while Morgan Stanley reiterated an underweight rating.
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