FedEx will report its Q4 results after today's closing bell, followed by the management's conference call at 17:30 ET.
The Capital IQ consensus expects the company to report a 5.1% yr/yr decrease in EPS to $3.94 on a 3.1% yr/yr increase in revenue to $17.85 bln.
Last quarter, FedEx reported weaker than expected results and lowered its guidance accounting for a slowing global economy.
This weak outlook pressured the stock, but FedEx was able to climb to a fresh 2019 high in mid-April. That bear market rally however has been muted and he stock is back to it’s December lows level now.
FedEx's international segment accounts for roughly 30% of revenue.
South China Morning Post reported today that the Chinese government may put FedEx on its list of unreliable foreign entities. Global Times speculated about this possibility on Sunday.
FedEx trades at 9.9x forward earnings expectations, which represents a discount to UPS's (UPS 97.47, -2.25, -2.3%) 12.9x forward multiple.
This name appears “cheap” on a PE basis. It is important to note however that these stocks that are cyclical in nature more often than not trap investors with their “cheap valuation” at the tail end of their cycle. It is more important to note their growth/overall economic growth rather than their PE multiple.
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