Street View: FedEx clouds outlook with guidance noise, conviction endures

FedEx

24/06/2026 10:19

Repeats with headline tag
** FedEx FDX.N on Tuesday reported shrinking quarterly margin in its core delivery segment, year-on-year, despite exceeding profit estimates and projecting an 11% annual revenue growth 
** The results included the trucking business spun off this month
** Shares fell 7% premarket 
     
NOISE DOMINATES, BUT OPTIMISM LINGERS 
** J.P. Morgan ("overweight") says weaker margins overshadowed the earnings beat, but forecasts improved performance as FedEx moves through its transition year and earnings pick up
** Jefferies ("buy," PT: $360) says it remains confident in the firm's longer-term earnings trajectory despite near-term noise from the transition
** Morgan Stanley ("underweight," PT: $160) says FedEx faces a "noisy transition ahead," adds that it is hard to draw conclusions from the guidance due to reporting changes and the freight business's separation
** Wolfe Research ("outperform," PT: $378) says the guidance could prove conservative; pointing to fuel tailwinds and surcharge changes     
     

 (Reporting by Rashika Singh in Bengaluru)
 ((rashika.singh@thomsonreuters.com))