FedEx Outpaces S&P 500 Ahead of Q2 Earnings: Will the Numbers Impress?
FedEx Outpaces S&P 500 Ahead of Q2 Earnings: Will the Numbers Impress?
FedEx to report second-quarter earnings tomorrow
- FedEx to report earnings tomorrow.
- EPS of $4.20 on $22.4 billion revenue is expected.
- Investors are looking for healthy margins amid cost cutting.
FedEx (FDX), the global shipping giant, is set to report second-quarter fiscal earnings after the closing bell tomorrow. The stock is up nearly 10% in December and trading at the highest level since July 2021. Will the numbers boost the stock price further?
According to consensus figures from Yahoo Finance, analysts expect earnings per share (EPS) of $4.20 on $22.4 billion in revenue. That would compare to last year’s $3.18 per share on $22.8 billion in non-GAAP revenue, which ended up disappointing expectations.
Analysts have grown increasingly bullish on FedEx earnings over the last several months amid better-than-expected business and economic conditions. While freight demand is subdued, the downfall of Yellow Corp. will likely prove a tailwind for the company, which has given FedEx thousands of shipments per day over the last few months.
Efficiency changes at FedEx
Meanwhile, cost-cutting measures are in focus. The new CEO Raj Subramaniam, moved to consolidate FedEx Express, FedEx Ground, and FedEx Freight into one organization, in a move that will improve efficiencies and possibly increase operating margins to north of 10%.
The last few quarters have seen declines in shipments per day, a key measure for investors, which should slow considerably in the second quarter. A drop in fuel prices might also help the shipper to impress on its operating profit as crude oil prices fell through the quarter.
Operating expenses should fall from a year ago as the company aligns its price structure in the post-COVID-19 era. Analysts are looking for anywhere from a 3% to 5% reduction in total operating expenses. With the stock price performing nearly twice as well as the benchmark S&P 500 index—which is near all-time highs—will an impressive earnings report be enough to boost the price further? This report may spark some profit-taking if it’s anything but a stellar report.
Trading FedEx earnings
FedEx is trading with an implied volatility rank (IVR) of 41.1, and the December 22 option expiration shows an expected move of +/- 13.35.
That said, there is some opportunity to collect some premium, which could be done through an iron condor if taking a more neutral stance or selling put or call verticals for those with a directional bias. The stock is just 12% away from its all-time high of 319.90 set back in May 2021.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2025 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.