MMR

FedEx Reports Quarterly Results, Slow Demand Hits Margins

Options traders and analysts are chiming in on FDX in response

Deputy Editor
Jun 21, 2023 at 11:19 AM
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FedEx Corp (NYSE:FDX) reported better-than-expected fiscal fourth-quarter profits of $4.94 per share after the close yesterday, though revenue of $21.93 billion came in just below estimates. The company said that global shipping downturn has hurt the sector's margins and announced slower revenue growth for 2024.

Analysts are chiming in on the results, with no fewer than four price-target hikes and four price-target cuts so far. Of the 32 analysts in coverage, 19 carry a "buy" or better rating, with 13 say "hold" or worse, while the 12-month consensus price target of $255.18 is a 12.2% premium to current levels. 

At last glance, FDX was down 1.8% at $227.59, though earlier it moved as low as $223.24. The stock has been moving lower over the past few sessions, after hitting a 10-month peak, but its 80-day moving average lingers below as potential support. 

Over in the options pits, 41,000 calls and 52,000 puts have been exchanged so far, which is nine times the average daily volume. The weekly 6/23 220-strike put is the most popular contract, with new positions being opened there. 

 

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