FedEx Corporation, the worldwide package delivery giant, is set to benefit from higher shipping rates set in January and from a lower tax rate in effect under the new tax law. The company is set to report earnings after the closing bell on Tuesday, March 20. The stock closed Monday, March 19, at $249.61, statistically unchanged year to date and up 10.3% from its Feb. 9 low of $226.20. The stock set its all-time intraday high of $274.66 on Jan. 18 and is down 9.1% since then.
Analysts expect FedEx to deliver earnings per share of $3.17 when the company reports results on Tuesday. Analysts have noted that the package delivery giant and its Express, Ground, Freight and Home Delivery units implemented a 4.9% rate hike in the U.S., but they warn that higher costs in the Ground unit and high debt levels could be a drag. (See also: FedEx Seen Rising Over 20% as It Beats Amazon on Cost.)
Package delivery giant FedEx reports earnings with a market-neutral P/E ratio of 23.20 and a dividend yield of just 0.79%. …read more
Read more here: FedEx Delivers Earnings Below Its Quarterly Pivot