FedEx To Exceed Expectations In Q2 Despite Transport Sector Headwinds, Analyst Predicts
Portfolio Pulse from Anusuya Lahiri
Citi analyst Christian Wetherbee predicts FedEx Corp (NYSE:FDX) will exceed Q2 expectations, maintaining the company as a top pick. Despite headwinds in the transport sector, Wetherbee's estimates remain above the Street's, at $4.51 for Q2 and $18.75 for FY24. Macro factors, DRIVE cost initiatives, better LTL results, and an extra Cyber-Week day are expected to contribute to another strong quarter. However, it's uncertain if FedEx will raise its guidance due to fundamental transport sector headwinds. FedEx shares saw a slight increase of 0.18% to $256.
November 21, 2023 | 7:53 pm
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Citi analyst maintains FedEx as a top pick, expecting it to outperform Q2 expectations with estimates above the Street's. DRIVE initiatives and better LTL results contribute to the positive outlook, but guidance raise is uncertain.
The positive outlook from a reputable analyst, combined with specific factors such as DRIVE cost initiatives and better LTL results, suggest a likely short-term positive impact on FDX's stock price. However, the uncertainty around guidance raise due to sector-wide headwinds tempers the potential impact slightly.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100