Research Alert: CFRA Maintains Hold Rating On Shares Of Fedex Corporation

06:20 PM EDT, 03/20/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

FDX reported mixed Q3 FY 25 results, with revenue up 2% Y/Y to $22.2B, beating expectations of $21.9B, while adjusted EPS of $4.51 rose 17%, but missed consensus of $4.63. Adjusted operating income increased 11% to $1.51B, with operating margin expanding 60 bps to 6.8%, driven by cost reduction initiatives, particularly the DRIVE program. Federal Express showed resilience with operating income up 10% to $1.29B on higher base yields and increased volumes, though we believe some volume growth reflects advanced purchases ahead of potential tariff complications. Management lowered FY 25 guidance, now expecting flat to slightly down revenue and adjusted EPS of $18.00-$18.60 (down from $19.00-$20.00), citing persistent weakness in the U.S. industrial economy and broader economic uncertainty. Despite near-term headwinds, we believe the company's transformation initiatives, including the planned FedEx Freight spin-off and ongoing cost optimization efforts, position it well for long-term value creation.

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