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FedEx Corporation (FDX - Free Report) is set to release fourth-quarter fiscal 2023 (ended May 31) results on Jun 20, 2023, after market close.

FDX has a decent surprise record with its earnings per share surpassing the Zacks Consensus Estimate in two of the preceding four quarters (missed twice). The average beat is 8.8%.

The Zacks Consensus Estimate for earnings per share has been revised 1.3% upward in the past 60 days.

FedEx Corporation Price and EPS Surprise

FedEx Corporation price-eps-surprise | FedEx Corporation Quote

Against this backdrop, let’s look into the factors that are likely to have impacted FedEx’s to-be-reported quarter’s performance.

Akin to fiscal third quarter, we expect persistent demand weakness, especially at FedEx Express, to have dented performance in the to-be-reported quarter owing to lower global volumes. The Zacks Consensus Estimate for segmental revenues suggests a 9.5% decline from the year-ago fiscal quarter’s reported number.

Increased purchased transportation rates and lower package volume are likely to have affected the quarterly performance of the FedEx Ground segment. The Zacks Consensus Estimate for the segment’s revenues implies a 1.6% decrease from the prior-year fiscal quarter’s reported number.  

Softness pertaining to average daily shipments are likely to have hurt performance of the FedEx Freight segment as well. The Zacks Consensus Estimate for segmental revenues indicates a 5.4% fall from the year-earlier fiscal quarter’s reported number.

However, cost-control actions are likely to have aided FDX’s performance in the quarter under review.

What Does the Zacks Model Say?

The proven Zacks model does not conclusively predict an earnings beat for FedEx this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings surprise. However, that is not the case here.

Earnings ESP: FedEx has an Earnings ESP of -3.20% as the Most Accurate Estimate is pegged at $4.67, 16 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FedEx currently carries a Zacks Rank #3. 

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