FedEx Corporation (FDX) is set to release its first-quarter earnings for fiscal year 2025 on September 19, 2024. Analysts are expecting earnings per share (EPS) of $4.84, representing a year-over-year increase of 6.4%. Revenue is projected to come in at $21.91 billion, a 1.1% rise from the previous year. FedEx (FDX) has beaten EPS estimates in seven out of the last nine quarters, indicating a solid track record of outperforming expectations​.

FedEx (FDX) operates in the transportation and logistics sector, alongside its main competitor, United Parcel Service (UPS). Both companies are integral to global trade, delivering about 3% of the world’s GDP each year. FedEx (FDX) is known for its strategic focus on cost reductions, particularly through its DRIVE initiative, which aims to save $4-5 billion annually by optimizing its network​.

The company’s stock is currently trading with a price-to-earnings (P/E) ratio of about 18.7, which places it competitively within the industrials sector. Historically, FedEx (FDX) stock has seen significant movement following earnings reports, particularly when it surpasses expectations. In June 2024, when the company beat estimates by $0.04, the stock saw a modest uptick. Investors will be keen to see if the company continues this trend​.

FedEx’s (FDX) business is structured into three key segments: FedEx Express, FedEx Ground, and FedEx Freight. FedEx Ground and FedEx Freight have been top performers, contributing to the company’s strong financial performance, while FedEx Express has faced challenges from increased competition and operational costs. Despite these challenges, FedEx (FDX) has remained focused on profitable growth and improving capital efficiency​.

Labor issues, such as recent pilot strikes and the potential for strikes in related industries like Boeing’s manufacturing, have also affected FedEx (FDX). Although the company has not yet faced major disruptions, labor unrest in its supply chain could impact its operations. For example, FedEx pilots recently negotiated a new contract, avoiding a strike, but ongoing negotiations with labor unions may create uncertainty. Additionally, Boeing’s manufacturing strikes could affect FedEx’s fleet modernization plans, potentially delaying deliveries of new aircraft​.

Overall, FedEx (FDX) is positioned for moderate growth, but external factors like labor strikes and rising costs could influence its future performance. Investors will be watching closely to see how the company navigates these challenges.