Transportation and logistics giant FedEx Corp. is expected to report its Q3 2025 earnings on March 20, after the market close. With a market capitalisation of $59.08 billion, FedEx is one of the large-cap players.
Its range of services runs the gamut, from freight to eCommerce, business services and business solutions worldwide. Recently, FedEx stood out as one of the World’s Most Ethical Companies, a recognition awarded by Ethisphere, a global leader in defining business standards and best practices.
Receiving this title for the third consecutive year, FedEx seems to be on a winning streak. The service provider was also ranked among the top 20 Most Admired Companies by Forbes earlier in the year.
In 2024, FedEx outperformed competitor UPS, expanding its revenues and operating margins. Not only did the freight company report better financials than its competitor last year, but it also announced plans to separate into two public companies – FedEx and FedEx Freight.
Part of a greater spin-off effort involving FedEx Freight, the separation is expected to be completed within 2025, in a tax-efficient manner for shareholders. The reasoning behind the spin-off is to increase competitiveness and operational efficiency across both entities, according to official company statements. It remains to be seen if Thursday’s data will reflect this momentum.
More than a numbers game
In anticipation of the big announcement, Wall Street analysts anticipate FedEx will post $4.66 earnings per share (EPS), 20.7% up from the same period last year. Revenues are similarly expected to rise 0.8% year-over-year to $21.88 billion.
The consensus EPS estimate for the quarter has been revised downward by 1% over the past 30 days. This reflects multiple analysts’ collective reassessment of their initial forecasts during this period.
It may be worth pointing out that FedEx has been given a “Buy” rating by several analysts at Citi, who lowered their price targets from $347 to $317. Whether FedEx will lower its outlook for adjusted EPS for 2025 in the $19-$20 ballpark, which it lowered the previous quarter is key.
Tariffs are a major driver of the downbeat investor sentiment and the Street’s $18.97 consensus for the stock, below the company’s lowest target. However, the company’s fundamentals seem positive.
FedEx’s strategic move towards cost efficiency, such as the DRIVE initiative which seeks to generate significant savings, is critical in the face of macroeconomic headwinds. This paired with the prospects of a peak in the Express package sector adds to the generally positive outlook, despite the lowered price target.
Hovering around $245 – $250 on TibiGlobe’s trading platform, FedEx stock CFD price movements appear to be illustrating exactly that. While the buying pressure is not yet there, there is plenty of room for the upside. Yet caution must be exercised as volatility tends to increase as the earnings release date approaches. Using Stop Loss and Take Profit and keeping up to date with the latest news can help you limit the risk of loss.
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