FDX - ETFs to watch ahead of FedEx earnings

FedEx ( NYSE: FDX ) is scheduled to report quarterly results after the closing bell on Tuesday, a report that will likely have implications for entire transportation sector (and potentially the market as a whole). The financial figures from the package delivery giant could have an impact on a host of exchange trade funds that have heavy investments in the firm.

FDX is owned by 198 different ETFs. Per ETF.com , FDX is most heavily concentrated in ProShares Supply Chain Logistics ETF ( NYSEARCA: SUPL ), with a portfolio exposure of 4.03%.

Here are a few other ETFs that have the heaviest weightings toward FDX: iShares U.S. Transportation ETF ( IYT ) with 3.64% weighting, First Trust Nasdaq Transportation ETF ( FTXR ) with 3.28% weighting, Pacer Industrials and Logistics ETF ( SHPP ) with 3.15% weighting and AdvisorShares Drone Technology ETF ( UAV ) with 3.10% weighting.

For FDX's upcoming report, analysts expect adjusted EPS of $2.82 on the revenue of $23.72B. This compares to EPS of $4.83 and revenue of $23.5B a year ago.

In September, FDX dropped more than 20% after pre-announcing Q1 results and withdrawing its 2023 outlook. In revealing the cautionary forecast, the firm cited macro pressures, especially in Asia and Europe.

Meanwhile, CEO Raj Subramaniam highlighted cost-saving initiatives and pricing actions to offset weak demand. As part of this, he announced cost saving of $2.2B to 2.7B, with about $300M realized in the first quarter and another $700M expected in Q2.

Weak outlook led several analysts to cut their price targets on the stock.

FDX stock has dropped more than 31% over a period of one year. Over the same timeframe, peer UPS ( UPS ) fell about 13% . Looking more generally, iShares Transportation Average ETF ( IYT ) -17% and First Trust Nasdaq Transportation ETF ( FTXR ) -21% past 12 months.

See why SA contributor WideAlpha prefers UPS over FDX .

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