FedEx
The 10-second takeaway
For the quarter ended Feb. 29 (Q3), FedEx met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share improved significantly.
Margins increased across the board.
Revenue details
FedEx logged revenue of $10.56 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $10.58 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $9.66 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $1.55. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.34 per share on the same basis. GAAP EPS of $1.65 for Q3 were 126% higher than the prior-year quarter's $0.73 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 24.7%, 150 basis points better than the prior-year quarter. Operating margin was 7.7%, 340 basis points better than the prior-year quarter. Net margin was 4.9%, 250 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $11.18 billion. On the bottom line, the average EPS estimate is $1.97.
Next year's average estimate for revenue is $43.02 billion. The average EPS estimate is $6.44.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,105 members rating the stock outperform and 211 members rating it underperform. Among 737 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 703 give FedEx a green thumbs-up, and 34 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 $103.14.
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