FDX - FedEx Earnings Summary: P/E Still Cheap To Growth Freight Spinoff Adds To Valuation Story

2024-06-27 15:40:00 ET

Summary

• FedEx reported its fiscal Q4 ’24 earnings results on June 25th after the closing bell, and the stock rose $39, or 15%, on June 26th on heavy volume.
• The potential spinning off of Freight, disclosed in the earnings release, is a potential additional catalyst for FedEx stock.
• FedEx’s valuation story remains intact. Even with the 15% jump in stock price, the P/E remains quite reasonable to expected EPS growth, and price-to-sales is still below 1.0x, at 0.83x after Wednesday’s close.

FedEx ( FDX ) reported its fiscal Q4 ’24 earnings results Tuesday night, June 25th, 2024 after the closing bell, and the stock rose $39, or 15%, yesterday, June 26th, on heavy volume as FedEx disclosed on page 2 of the earnings release that “FedEx Freight has announced plans to further optimize its operations and match capacity with demand through planned permanent closure of 7 freight facilities... (further on in the press release), “FedEx management and the Board of Directors are conducting an assessment of the role of FedEx Freight in the company’s portfolio structure and potential steps to further unlock sustainable shareholder value.”...

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