FedEx First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component FedEx (NYSE:FDX) will unveil its latest earnings on Tuesday, September 18, 2012. FedEx provides various transportation, e-commerce and business services.

FedEx Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.40 per share, a decline of 4.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.69. Between one and three months ago, the average estimate moved down. It also has dropped from $1.57 during the last month. Analysts are projecting profit to rise by 6.5% compared to last year’s $7.02.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of $1.99 per share versus a mean estimate of net income of $1.92 per share.

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Stock Price Performance: Between July 17, 2012 and September 12, 2012, the stock price had fallen $2.17 (-2.4%), from $91.25 to $89.08. The stock price saw one of its best stretches over the last year between June 13, 2012 and June 20, 2012, when shares rose for six straight days, increasing 6% (+$5.15) over that span. 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.

Analyst Ratings: With 16 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.

Wall St. Revenue Expectations: Analysts predict a rise of 1.7% in revenue from the year-earlier quarter to $10.7 billion.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 1.4% to $550 million ($1.74 a share) from $558 million ($1.75 a share) the year earlier, but exceeded analyst expectations. Revenue rose 4.3% to $11.01 billion from $10.55 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.69 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. The company improved this liquidity measure from 1.59 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 10.5% to $9.06 billion while liabilities rose by 4.3% to $5.37 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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