SA: Will FedEx deliver earnings beat in Q4 despite cost pressures?

SEEKING ALPHA‘s editor Jessica Kuruthukulangara writes:

FedEx (NYSE:FDX) is scheduled to announce Q4 earnings results on Thursday, Jun. 23, after market close.

Consensus EPS estimate is $6.88 (+37.3% Y/Y) and consensus revenue estimate is $24.56B (+8.7% Y/Y).

Over the last 2 years, FDX has beaten EPS estimates 75% of the time and revenue estimates 100% of the time.

Over the last 3 months, EPS estimates have seen 6 upward revisions and 3 downward. Revenue estimates have seen 4 upward revisions and 5 downward.

FDX recently reshuffled its board as part of a deal with activist investor D.E. Shaw, made changes to its executive compensation program and raised its dividend by 52%.

Citigroup said the actions focused on operational efficiency, bolstering bullish long-term estimates. Bank of America said the executive shift is an important inflection point and FDX is now focusing on returns, cash generation, and governance…

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PS: As it turned out, the trading update was broadly “in line“… albeit a tad soft, if anything…