Why FedEx Stock Is On The Move Thursday

FedEx Corp FDX shares are trading higher Thursday after the company reported mixed financial results and raised its earnings outlook. Multiple analysts lifted price targets following the print.

What Happened: FedEx reported first-quarter revenue of $21.7 billion, which missed the consensus estimate of $21.81 billion, according to Benzinga Pro. The company reported quarterly earnings of $4.55 per share, which beat analyst estimates of $3.74 per share.

FedEx said its results were primarily driven by its DRIVE program initiative and continued focus on revenue quality, "partially offset by ongoing demand weakness." FedEx sees permanent cost reductions from the DRIVE program of $1.8 billion.

"FedEx Ground had an outstanding quarter which, when combined with improved earnings at FedEx Express and expense controls across the organization, led to our better-than-expected overall financial performance," said Raj Subramaniam, president and CEO of FedEx. 

FedEx lowered its full-year revenue guidance, but raised its earnings outlook. The company now expects approximately flat revenue growth on a year-over-year basis, while full-year earnings are expected to be in the range of $17 to $18.50 per share versus estimates of $17.50 per share.

See Also: Weekly Jobless Claims Unexpectedly Fall 20K To 201K

Analyst Changes:

• Citigroup analyst Christian Wetherbee maintained FedEx with a Buy and raised the price target from $295 to $300.
• Raymond James analyst Patrick Tyler Brown maintained FedEx with an Outperform and raised the price target from $270 to $279.
• Wells Fargo analyst Allison Poliniak maintained FedEx with an Equal-Weight and raised the price target from $270 to $280.

FDX Price Action: FedEx shares were up 4.98% at $263 at the time of publication, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.