Will FedEx Deliver on Earnings?

FedEx Corporation (NYSE: FDX) has seen a remarkable resurgence, boasting five consecutive weeks of gains and a staggering 62.77% surge in its share price this year, setting the stage to break a two-year decline.  

As investors anticipate the impending second-quarter earnings report, the question remains: can FedEx surpass its previous outstanding performance? Analysts, in consensus, forecast a robust second-quarter profit of $976.6 million, outshining last year’s $788 million, mirroring the optimistic sentiment. However, revenue expectations indicate a slight dip from $22.8 billion to $22.36 billion, setting the stage for keen market scrutiny.  

This narrative unfolds against the backdrop of challenges encountered during the global shipping downturn, coupled with adjustments to accommodate shifting post-pandemic e-commerce demands. In response, FedEx strategized with cost-cutting measures, aiming to fortify fiscal resilience in 2024 amid subdued demand. The company anticipate a steadier revenue trajectory, forecasting a flat to low-single-digit growth outlook. 


FedEx’s share price has staged a remarkable rebound, erasing all losses incurred in 2022, and is now poised for a staggering year-to-date gain exceeding 50%. Last year’s downtrend, marked by a descent within a descending channel pattern under the 100-day moving average, saw a drastic shift. The narrative switched gears as the stock surged beyond the channel and moving average, signalling an emerging uptrend. 

Amidst this trajectory, a support level solidified at $224.69 per share, following a retracement that drove the stock into oversold RSI territory. This marked a pivotal moment for the bulls, triggering a noteworthy rebound. The stock is currently on the cusp of reaching its all-time high of $319.90 per share. 

The impending second-quarter earnings report holds sway over the stock’s immediate direction. An earnings surprise surpassing market expectations could instil further optimism, potentially propelling the stock towards the $319.90 mark. Conversely, a retreat might encounter substantial support at the $224.69 level, mitigating downward pressures. 


FedEx has charted an impressive trajectory, surging past its previous year’s hurdles and setting the stage for a momentous turnaround. The company’s resilience amidst a challenging global shipping landscape, coupled with strategic cost-cutting measures, likely positions it optimally for robust fiscal resilience. Anticipation is high for its second-quarter earnings, expected to affirm its potential for sustained growth, potentially signaling a new era of profitability and progress. 

Sources: FedEx Corporation, Reuters, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.