FedEx
The 10-second takeaway
For the quarter ended May 31 (Q4), FedEx met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped slightly.
Gross margins improved, operating margins dropped, net margins shrank.
Revenue details
FedEx logged revenue of $11.00 billion. The 16 analysts polled by S&P Capital IQ wanted to see a top line of $11.12 billion on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $10.55 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.99. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.92 per share. GAAP EPS of $1.73 for Q4 were 1.1% lower than the prior-year quarter's $1.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 26.7%, 40 basis points better than the prior-year quarter. Operating margin was 9.0%, 10 basis points worse than the prior-year quarter. Net margin was 5.0%, 30 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $10.89 billion. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $44.76 billion. The average EPS estimate is $7.35.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,125 members out of 2,338 rating the stock outperform, and 213 members rating it underperform. Among 710 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 671 give FedEx a green thumbs-up, and 39 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FedEx is outperform, with an average price target of $107.50.
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