FedEx Falls After Disappointing FQ1 Earnings, Downbeat Guidance


FedEx (NYSE:FDX) last issued its quarterly earnings data on Tuesday, March 21st. Mutual Of America Capital Management Llc bought 59,794 shares as the company's stock rose 7.09% with the market.

Investors are a little more bullish on FedEx Corporation if you take a look at the decrease in short interest.

UBS both downgraded the stock and raised the price target on September 15 changing the price objective from $186.00 to $242.00 and changing the rating from "Buy" to "Outperform".

FedEx Express will increase its rates by an average of 4.9% for US domestic, USA export and USA import services.

FedEx said higher shipping rates across its operating units were more than offset by the cyber attack, costs related to the integration of its TNT unit, which it acquired previous year for $4.8 billion, higher costs at its FedEx Ground unit, and a higher tax rate.

Most services of the Dutch TNT Express unit resumed during the quarter and systems had been restored, but TNT Express volume, revenue and profit remained below pre-attack levels, the company said. BlackRock Inc. increased its position in FedEx Corporation by 1,912.1% during the 1st quarter. The ex-dividend date of this dividend is Friday, September 8th.

On 8/18/2017 announced a quarterly dividend of $0.50 0.97% with an ex dividend date of 9/8/2017 which will be payable on 9/11/2017.

FDX has been the subject of a number of recent research reports. The stock of FedEx Corporation (NYSE:FDX) has "Hold" rating given on Monday, August 14 by Stifel Nicolaus. Oregon-based Mengis Management Inc has invested 0.59% in FedEx Corporation (NYSE:FDX). FedEx's dividend payout ratio (DPR) is presently 23.46%. FMR LLC now owns 4,530,154 shares of the shipping service provider's stock valued at $984,539,000 after buying an additional 15,382 shares in the last quarter.

In a statement released after-hours on Tuesday, the NYSE-listed firm said it earned US$596mln, or US$2.19 a share in the quarter, down from US$715mln, or US$2.65 a share at the same stage a year earlier. The stock has a 50 day moving average of $210.17 and a 200-day moving average of $202.36. Brick & Kyle Associates now owns 674 shares of the shipping service provider's stock valued at $132,000 after purchasing an additional 10 shares in the last quarter. Barclays PLC reiterated an "overweight" rating and set a $230.00 price target on shares of FedEx in a report on Monday, March 20th. Stephens maintained the shares of FDX in report on Wednesday, June 21 with "Buy" rating. Cambridge Advsrs Incorporated stated it has 0.14% in FedEx Corporation (NYSE:FDX).

Among 32 analysts covering FedEx (NYSE:FDX), 18 have Buy rating, 1 Sell and 13 Hold.

FedEx Corporation (FDX) opened at 216.00 on Wednesday. On average, equities research analysts forecast that FedEx Corporation will post $13.38 earnings per share for the current fiscal year.

In related news, Director Kim Jabal sold 609 shares of the company's stock in a transaction on Thursday, June 29th. The shares were sold at an average price of $216.05, for a total transaction of $1,278,583.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO David L. Cunningham, Jr. sold 17,565 shares of the stock in a transaction that occurred on Thursday, June 22nd. Following the completion of the transaction, the executive vice president now directly owns 68,556 shares of the company's stock, valued at approximately $14,462,573.76. The shares were sold at an average price of $196.38, for a total transaction of $864,072.00. The disclosure for this sale can be found here.

The company said the cyber attack slashed 79 cents per share from its profit - almost 40 times the 2-cents-a-share impact from deadly Hurricane Harvey, which brought catastrophic flooding to southeastern Texas.

The FedEx Services segment provides the Business's other companies with sales, marketing, information technology, communications, customer service and other back-office support. Higher base rates were "more than offset" by reduced revenue and increased expenses resulting from the TNT Express cyberattack, TNT Express integration expenses, higher costs at FedEx Ground, a higher tax rate, and the impact from Hurricane Harvey, the company said in a statement.