FDX - Here's Why Shares in FedEx Surged Higher This Week
2024-06-28 07:23:32 ET
Shares in package delivery giant FedEx (NYSE: FDX) rose 16.5% in the week to Friday morning, according to data provided by S&P Global Market Intelligence . The increase came in the wake of a well-received set of fourth-quarter 2024 earnings after the close of trading on Tuesday.
The company beat Wall Street analysts' expectations for revenue and earnings, and management's guidance for its financial 2025 contains several assumptions that signal its end markets are starting to improve.
For example, management expects low- to mid-single-digit revenue growth in 2025, which will be "largely volume-driven." That's a good sign because the package delivery market is currently in a state of overcapacity, so growing volumes imply that demand is starting to catch up with supply -- and pricing should improve in time.
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Here's Why Shares in FedEx Surged Higher This Week