Anticipated Response of FDX Shares Following Forthcoming Profit Report
FedEx (NYSE:FDX) Ready to Report Q1 Earnings on March 20, 2025
Brace yourself, investors! FedEx, the renowned parcel delivery giant, is about to share its Q1 earnings on Thursday, the 20th of March, 2025. According to a pool of analysts, FedEx is anticipated to report an impressive earnings per share of $4.63, a noteworthy increase from $3.86 in the same quarter last year. The revenue forecast is set at a modest 1% growth, reaching an estimated $21.89 billion. However, the company is battling headwinds due to the downturn in consumer demand and the industrial slowdown.
Currently, FedEx boasts a market capitalization of $59 billion. Over the past year, the company recorded a revenue of $87 billion, with an impressive operational profit of $5.9 billion and net income of $3.9 billion. In the post-earnings stock reaction game, your position will depend on the earnings report's alignment with investor expectations. If you're an event-driven trader, understanding historical results can be instrumental. Here's how: you can either anticipate the odds pre-announcement or analyze the correlation post-announcement to enter a trade.
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The Odds of FedEx's Post-Earnings Returns
Here's a glance at one-day (1D) post-earnings returns over the past five years:
- Positive one-day (1D) returns were observed about 53% of the time, with 10 positive and 9 negative returns.
- This percentage increases to 55% if we consider data for the last 3 years.
- The median of the 10 positive returns was 6.6%, and the median of the 9 negative returns was -4.0%.
Short-Term vs Medium-Term Returns Correlation
A less risky strategy (though not always effective) is understanding the correlation between short-term and medium-term returns post-earnings, finding a pair with the highest correlation, and executing the appropriate trade. Here are some correlation data based on a 5-year and a 3-year (more recent) history.
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- On March 20, 2025, FedEx (NYSE: FDX) will reveal its Q1 earnings, and the forecasted earnings per share is $4.63, indicating a potential increase from the same quarter in the previous year.
- Despite the anticipated earnings growth, FedEx faces challenges due to a downturn in consumer demand and industrial slowdown.
- Post-earnings, analysts will assess the financial performance of FedEx and make decisions on their stock positions; if the results align with expectations, the stock may experience significant movement in value.
