FedEx Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.40 per share, a decline of 10.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.67. Between one and three months ago, the average estimate moved down. It also has dropped from $1.41 during the last month. Analysts are projecting profit to rise by 2.9% versus last year to $6.40.
Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of $1.45 a share versus the estimate of net income of $1.40 a share. It marked the fourth straight quarter of beating estimates.
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Stock Price Performance: Between October 17, 2012 and December 13, 2012, the stock price had fallen $3.24 (-3.5%), from $92.95 to $89.71. It saw one of its worst periods between August 6, 2012 and August 14, 2012 when shares fell for seven straight days, dropping 2.8% (-$2.54) over that span. The stock price saw one of its best stretches over the last year between November 16, 2012 and November 29, 2012, when shares rose for nine straight days, increasing 5.4% (+$4.67) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.85 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Wall St. Revenue Expectations: On average, analysts predict $10.84 billion in revenue this quarter, a rise of 2.4% from the year-ago quarter. Analysts are forecasting total revenue of $43.96 billion for the year, a rise of 3% from last year’s revenue of $42.7 billion.
On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 4.3% in the fourth quarter of the last fiscal year before climbing again in the first quarter.
Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
A Look Back: In the first quarter, profit fell 1.1% to $459 million ($1.45 a share) from $464 million ($1.46 a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.6% to $10.79 billion from $10.52 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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