Why FedEx Stock Is Delivering Gains Wednesday Morning

FedEx Corp FDX shares are trading higher after the company reported mixed financial results. Analysts are moving in different directions Wednesday morning following the company's quarterly results. 

Q2 Earnings: FedEx reported fiscal second-quarter revenue of $22.8 billion, which missed average analyst estimates of $23.74 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $3.18 per share, which beat estimates of $2.83 per share.

FedEx said its second-quarter results were constrained by continued demand weakness, particularly at FedEx Express.

"The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment. Our earnings exceeded our expectations in the second quarter driven by the execution and acceleration of our aggressive cost reduction plans," said Raj Subramaniam, president and CEO of FedEx. 

See Also: Trading Strategies For FedEx Stock

Outlook: FedEx is prioritizing actions to quickly reduce costs in order to align fiscal 2023 costs with weaker-than-expected volumes. 

FedEx said it expects full-year 2023 adjusted earnings to be between $13 and $14 per share versus estimates of $14.08 per share. 

Analyst Assessment:

• JPMorgan analyst Brian Ossenbeck maintained FedEX with a Neutral and lowered the price target from $184 to $179.
• UBS analyst Thomas Wadewitz maintained FedEx with a Buy and raised the price target from $215 to $225.
• Credit Suisse analyst Ariel Rosa maintained FedEx with an Outperform and lowered the price target from $213 to $211.

Check This Out: 10 Price Target Changes For Wednesday

FDX Price Action: FedEx has a 52-week high of $266.79 and a 52-week low of $141.92.

FedEx shares are up 5.57% at $173.50 at the time of writing, according to Benzinga Pro.

Photo: courtesy of FedEx.