FedEx Earnings Miss, Lowers Guidance on International Growth Trends

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  • #20204
    ThePitBoss
    Participant

    FedEx Corp reported after the close Tuesday missing…

    [article]1423[/article]

    #20324
    ThePitBoss
    Participant

    FedEx Corp. (NYSE: FDX) downgraded to Neutral from Positive at Susquehanna on Thursday.

    “We see a far lower probability of a near/mid-term upside surprise to free cash flow,” Susquehanna analyst Bascome Majors said of FedEx.
    While Susquehanna believes FedEx’s investment strategy is “strategically right-minded for the long-term,” the firm believes the stock will remain under pressure in the near-term without a new source of cash flow, Majors said.

    Majors gave three specific reasons for Susquehanna’s downgrade:
    A shrinking payoff from FedEx’s acquisition of European delivery service TNT Express, growing global economic uncertainty and capital expenditures “that should remain elevated” for the next two years, he said.

    While Susquehanna believes FedEx’s investment strategy is “strategically right-minded for the long-term,” the firm believes the stock will remain under pressure in the near-term without a new source of cash flow, Majors said.

    “All eyes are on the company’s ability to deliver EPS growth more in line with their history,” Majors said.

    Market Summary > FedEx Corporation
    NYSE: FDX
    180.71 USD +2.81 (1.58%)
    Mar 29, 9:51 AM EDT

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