fedex corp FDX reported weaker than expected financial results for the first quarter with earnings per share of $3.44 on sales of $23.2 billion.
Three analysts provide their opinion on the Atlanta-based logistics company and its management.
Analyst Ravi Shankar reiterated the same weighting but left the price target unchanged at $250.
FedEx “surprisingly” failed to provide clarity on the reasons for the poor results and outlook, Shankar wrote in a note.
“MGMT. The focus has been on big cost-cutting plans, but expansion has also been lacking and narrowing it down to the bottom line given structural headwinds would be a challenge,” he said.
CHECK OUT: Are FedEx Troubles Signaling a Recession? Maybe not for UPS, DHL and Amazon
BMO Capital Markets
Analyst Fadi Chamoun kept the market performance rating while lowering the price target to $190 from $215.
FedEx’s first-quarter financial results and second-quarter guidance “underscore the significant slowdown in demand and momentum in revenue growth driven by macroeconomic challenges,” Chamoun said. “While cost-cutting programs and an emphasis on earnings quality should help mitigate headwinds, we believe we may be in the early stages of a cyclical slowdown and have limited confidence in the near-term earnings outlook. Is.”
View stock ratings from other analysts
KeyBank Capital Markets
Analyst Todd Fowler reconfirmed the company’s sector weight rating.
“Management is clearly trying to pull every cost lever attainable, and cost action should provide some buffer against weak macros both in FY23 and beyond,” Fowler said.
“Nonetheless, we believe both visibility and confidence remain low and see some risk to the underlying macro assumptions that appear to rule out potential further downside from late F1Q23 levels,” the analyst said. wrote.
FDX Price Action: FedEx shares are down 2.31% at $150.75 at the time of Friday’s publication.