FedEx shares up pre-market as it blasts forecasts for FY targets
Federal Express delivered some good earnings after the market closed on Thursday, but everything was blown out of the water by its outlook for the current year.
FedEx issued an adjusted profit forecast of between $14.60 to $15.20 per share for the full year, up from its previous projection of $13 to $14, and well above analysts' average estimate of $13.56.
(Video Transcript)
FedEx numbers
FedEx has raised its fiscal 2023 profit forecast. It came out with numbers after the bell last night in the States, citing progress in its plan to shave some $3.7 billion off in costs with the global delivery business really pumping up shares late in yesterday's session, up 11% in extended trade yesterday.
FedEx is not an all-session stock on the IG platform, so watch out at 1:30 pm today UK time when the shares start trading on Wall Street.
Adjusted earnings came in at 3.41 per share in the third quarter (Q3). That's down 1.18 on the third quarter last year, $0.65 higher than analysts' average estimates, so better than expected. Revenue fell 6% to $22.2 billion, missing Wall Street's forecasts.
Share price chart
Now, despite weak market conditions, FedEx now forecasts adjusted profit of between 14.60 to 15.20. And this is really what helped shares late in yesterday's session. That was well above previous projections of $13 to $14 and well above the average analyst estimate of 1356.
Now, as I said, it's not all sessions on the platform, but what I can tell you is on Reuters, they are looking at something like an 11% increase, some shares late in the session yesterday.
So that would take us up then to levels not seen since the 26th of August last year. So watching potentially for a good start today when the cash session gets underway for Federal Express on Wall Street.
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