PREVIEW: FedEx slips ahead of results as investors eye cost-cutting efforts
Shares of FedEx FDX.N down 1.3% at $345.02 on Thurs heading into fiscal Q3 results due after the bell, with focus on cost overhaul progress amid softer shipment volumes
Package delivery giant expected to post 6% rise in rev to $23.43 bln, while adj EPS seen at $4.09 vs $4.51 a yr ago, per LSEG
On its annual investor day last month, FDX said its holiday qtr adj profit would top Wall Street's view at that time and set growth targets through 2029
"We're religiously focused on cost," CFO John Dietrich said to investors
In Dec, Memphis, Tennessee-based co lifted low end of its full-yr profit forecast, citing benefits from its multi-year cost overhaul aimed at integrating its Ground and Express units
With move on the session, FDX shares up ~19 YTD, strongly outperforming ~5% advance in S&P 500 Industrials .SPLRCI and ~4% decline in S&P 500 .SPX
Avg rating of 30 analysts is "buy"; median PT of $405 implies 17% upside to current levels
FDX stock recently traded at ~16x forward earnings, above its 5-yr avg of 12x. In comparison, rival UPS UPS.N recently traded at 13x expected earnings vs its 5-yr avg of 15x - LSEG data
