FedEx Corporation is the world leader in express delivery. FedEx transports time-sensitive shipments to over 220 countries and regions around the world every day. The company has numerous subsidiaries specializing in different areas of the express and logistics business.

Revenue and profit fall short of expectations In the second quarter, the company reported earnings of $3.99 per share, up from $3.18 in the previous year. Analysts had expected $4.20. Revenue for the quarter was $22.2 billion, compared to $22.8 billion in the previous year. Analysts had predicted $22.4 billion. The disappointing earnings development is particularly disappointing.

Annual forecast lowered For the year, the company expects a low single-digit decline in revenue compared to the previous forecast. The company forecasts an adjusted earnings per share of $15.10 to $16.60 before certain adjustments to the pension plan, compared to the previous forecast of $15.35 to $16.85.

Logistics stock still barely in uptrend With the new quarterly numbers and statements for the new year, FedEx has disappointed its investors. After the announcement of the quarterly results, the logistics stock has fallen significantly, as you can see in the chart. The announcement to buy back another billion dollars of its own shares could not lift the mood on the stock market.

Potential for a price increase to $360 Conclusion: The numbers for the American shipping service provider are undoubtedly disappointing. Interestingly, despite the sharp correction, the one-year uptrend is still barely intact. Does this offer you an entry opportunity? A look at the analyst expectations shows a positive trend. 19 out of 32 analysts recommend buying and 13 recommend holding. What stands out: Not a single analyst considers a sale necessary despite the strong price increase. However, the recently increased analyst price target of $296 doesn’t offer much potential. Some analysts, however, see potential for a price increase to $360. In addition, as an investor, you benefit from a dividend yield of 2.02%. A look at the valuation shows: With a P/E ratio of 13 based on the earnings forecast for 2024, FedEx is moderately valued.