FedEx 'Surprisingly' Leaves Out Details On What Drove Earnings Miss, Analyst Says

FedEx Corp. (NYSE: FDX) reported weaker-than-expected fiscal first-quarter results, with earnings of $3.44 per share on revenues of $23.2 billion.

Three analysts provide their takes on the Atlanta-based logistics company and its management.

Morgan Stanley

Analyst Ravi Shanker reiterated an Equal-Weight rating, while keeping the price target unchanged at $250.

FedEx "surprisingly" did not provide clarity on the reasons for the downbeat results and outlook, Shanker wrote in a note.

“Mgmt. is focused on big cost cutting plans but detail there was lacking as well and it will be a challenge to drop this to the bottom line given the structural topline headwinds,” he added.

Check Out: Are FedEx's Troubles Indicative Of A Recession? Perhaps Not For UPS, DHL And Amazon

BMO Capital Markets

Analyst Fadi Chamoun maintained a Market Perform rating, while reducing the price target from $215 to $190.

FedEx’s fiscal first-quarter results and second-quarter guidance “underscore the significant loss of demand and yield growth momentum due to macro challenges,” Chamoun said. “While cost reduction programs and emphasis on revenue quality should help mitigate the headwinds, we sense that we may be in the initial stages of a cyclical downturn, and we have limited confidence in the near-term earnings outlook.”

Check Out Other Analyst Stock Ratings

KeyBanc Capital Markets

Analyst Todd Fowler reaffirmed a Sector Weight rating for the company.

“Clearly, management is attempting to pull every cost lever within reach, and cost actions in both FY23 and beyond should provide some buffer against a weaker macro,” Fowler said.

“That said, we sense both visibility and confidence remain low, and see some risk to underlying macro assumptions, which seemingly do not incorporate potential further deterioration from late F1Q23 levels,” the analyst wrote.

FDX Price Action: Shares of FedEx had declined by 2.31% to $150.75 at the time of publication Friday.