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Globe and Mail
a day ago
- Business
- Globe and Mail
Buy, Hold or Sell FedEx Stock? Key Tips Ahead of Q4 Earnings
FedEx Corporation ( FDX ) is set to release its fourth-quarter fiscal 2025 (ended May 31, 2025) results on June 24, after market close. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings has been revised downward by 1.5% in the past 60 days and is now pegged at $5.94 per share. Additionally, the consensus mark implies a 9.8% increase from the year-ago actual. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is pegged at $21.7 billion, indicating a 1.9% downward movement from the year-ago actual. FDX has a mixed earnings surprise history, as reflected in the chart below. Given this backdrop, let's examine the factors likely to influence FDX's Q4 results. We expect average daily shipments in the to-be-reported quarter to have been hurt by the weak demand scenario. Adverse weather conditions and a rise in recession fears following tariff-related tensions are likely to have adversely impacted demand and top-line performance in turn. The performance of the Express unit, FDX's largest segment, is likely to have been hurt due to demand-induced volume weakness. We anticipate revenues from the Express unit to decline 3.2% from fourth-quarter fiscal 2024 actual. The bottom-line performance in the to-be-reported quarter is likely to have been aided by cost-reduction benefits from the DRIVE program initiatives. These cost-reduction initiatives include reducing flight frequencies, parking aircraft and cutting staff. We anticipate expenses from salaries and benefits in the fourth quarter of fiscal 2025 to decrease 2.1% from the fourth quarter of fiscal 2024 actuals. Adjusted operating expenses in the to-be-reported quarter are expected to decline 4.4% from the year-ago actuals. We expect an update from management on FDX's multi-year deal with Amazon AMZN, which was signed during the quarter. Per the agreement, FDX is responsible for delivering select large packages for Amazon. The FDX-Amazon deal comes soon after FDX's rival, United Parcel Service UPS, decided to lower its volumes with Amazon. Q4 Earnings Whispers for FDX Our proven model does not conclusively predict an earnings beat for FDX this time. A company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here. Earnings ESP: FedEx has an Earnings ESP of -9.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #4 (Sell). FDX Stock Underperforms Industry in Q4, Outperforms UPS Shares of FDX have declined 17.1% in the fourth quarter of fiscal 2025 (March-May) compared with the Zacks Transportation—Air Freight and Cargo industry's 16.9% decline. However, FDX's price performance is better than that of UPS. Q4 Price Comparison FDX Trading Cheap On the basis of forward 12-month Price/Sales (P/S), FDX shares are trading at a discount compared to the industry average as well as UPS. FDX currently has a Value Score of B. FDX's P/S F12M Vs. Industry & UPS Investment Thesis for FDX Stock Tariff-related uncertainty and still-high inflation have been hurting consumer sentiment and growth expectations. FDX continues to struggle due to the normalization of volume and pricing trends in the post-COVID scenario. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve its long-term profitability. Driven by technology-focused consolidation and improved efficiencies, this program is expected to result in cost savings of $4 billion by fiscal 2025. The company's efforts to reward its shareholders are likely to support its share price. In June 2025, FedEx raised its quarterly dividend by 5.1% to $1.45 per share (or $5.80 annually). FDX is also active on the buyback front. Despite near-term challenges, it's worth noting that the company has the brand and the network to continue generating steady cash flows in the long run. Steer Clear of FDX Stock Ahead of Q4 Earnings Agreed that FDX has strong long-term potential (the company's long-term [3-5 years] earnings growth rate is an impressive 10.7%, higher than its industry's 9.1%) and is attractively valued, but the current market conditions and challenges suggest that now may not be the best time to purchase additional shares. The industry is experiencing a period of uncertainty with supply-chain concerns and fluctuating demand. Investors have ample reason to be wary of investing in FDX stock currently. As there is significant doubt about whether the challenges facing FDX will ease in the short term, investor sentiment surrounding this transportation heavyweight is unlikely to get a boost anytime soon. The combination of its weak current performance and an uncertain future casts a shadow over FDX's prospects. So, the stock appears a risky prospect for investors ahead of its fourth-quarter earnings. Its current Zacks Rank supports our thesis. You can see the complete list of today's Zacks #1 Rank stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Inc. (AMZN): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report
Yahoo
10-06-2025
- Business
- Yahoo
FedEx (NYSE:FDX) Increases Annual Dividend by 5% to US$5.80 Per Share
FedEx recently increased its annual dividend rate by 5%, highlighting its commitment to delivering shareholder value. Over the past month, the company's shares rose by 2%, in line with the broader market's positive movement. The dividend announcement likely reinforced FedEx's positive trajectory within the context of the company's ongoing privacy enhancements with clients. Meanwhile, the market was buoyed by optimism surrounding U.S.-China trade talks and strong corporate earnings reports, creating a favorable backdrop for FedEx's performance in conjunction with these broader trends. Every company has risks, and we've spotted 1 warning sign for FedEx you should know about. Find companies with promising cash flow potential yet trading below their fair value. The recent dividend increase by FedEx underscores its commitment to enhancing shareholder value, which aligns with the company's ongoing initiatives like the DRIVE, Network 2.0, and Tricolor strategies mentioned in the analysis. These efforts are geared toward cost-saving and network optimization, potentially improving margins and efficiency—factors that could significantly boost revenue and earnings forecasts. In turn, this might positively influence analysts' earnings expectations and drive investor confidence, reinforcing the company's projected growth trajectory. Over the last five years, FedEx has delivered a total return of 81.50%, inclusive of dividends, indicating strong longer-term performance. This contrasts with a recent one-year performance where FedEx exceeded the US Logistics industry's negative return of 20.4%, highlighting its resilience in challenging market conditions. Relative to the broader market, these numbers position FedEx as a stable performer in the logistics sector. Despite recent share price movements, FedEx remains approximately 23.2% below the consensus analyst price target of US$277.78, reflecting potential upside as per market observers. The current share price, coupled with strategic efficiencies and revenue-enhancing measures underway, suggests that achieving the projected earnings increase to US$5.9 billion could help narrow this gap, supporting upward stock performance over the longer term. Click here to discover the nuances of FedEx with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:FDX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
23-05-2025
- Automotive
- Business Upturn
Force Marketing Named 2025 Georgia Fast 40 Honoree and EY Entrepreneur of the Year Finalist in the Southeast
By GlobeNewswire Published on May 24, 2025, 00:57 IST Atlanta, May 23, 2025 (GLOBE NEWSWIRE) — Force Marketing, a data-driven technology and marketing leader in the automotive industry, has been named a 2025 Georgia Fast 40 honoree by ACG Atlanta and celebrates CEO John Fitzpatrick's nomination as a finalist for Ernst & Young's Entrepreneur of the Year® Southeast Region. The recognitions mark a breakout moment for the company, which has quietly been growing at a rapid but sustained pace behind the scenes—and is now turning heads across the industry. 'While we're certainly proud of our consistent 25% year-over-year growth for the past three years, we're equally, if not more, excited about our 95% client retention rate,' said Fitzpatrick. 'That's the real foundation of our momentum. Our OEM and dealer partners are growing with us, and we're bringing even more dealers into the fold. That kind of impact is what makes milestones like these award recognitions truly meaningful.' Long known as a legacy name in automotive marketing, Force is rewriting the playbook with a unified data tech stack–including its automotive-specific CDP, Audience IQ–that supports both variable and fixed operations. The company's acquisition of GSM (Gulf States Toyota's longtime marketing partner) in 2021 was a major turning point, giving Force unmatched depth in after sales loyalty and lifecycle marketing. Audience IQ houses a full-stack suite of solutions including DRIVE (streaming CTV pre-market & in-market audiences), Conquest Connect, Recapture and ATOM, Force empowers dealers with proprietary audience targeting, dynamic creative and end-to-end retention tools that drive results across every dealership department. 'Our growth story is powered by people,' added Fitzpatrick. 'We have world-class team member retention—over 95% for the last three years—all while operating fully remote with 115 team members across 21 states and counting. Our team is the secret sauce behind every milestone, every innovation, and every client success story.' As Force expands and continues delivering results for OEMs and dealer groups across the country, one thing is clear: this isn't just growth— it's evolving the way dealers connect with their customers. About Force Marketing Founded in 2006, Force Holdings, LLC is a leading marketing technology provider to the automotive industry whose family of brands includes: Force Marketing, WeDrive Automotive and Gulf States Marketing (GSM). Headquartered in Atlanta with over 110 team members strategically positioned all over the U.S., the Force Family of Brands focuses on partnering and fostering relationships with dealers and OEMs nationwide to maximize ROAS, speed to market and improved lifetime customer value metrics. More information about Force Marketing's comprehensive suite of tech-enabled products can be found at . Attachment Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
23-05-2025
- Automotive
- Yahoo
Force Marketing Named 2025 Georgia Fast 40 Honoree and EY Entrepreneur of the Year Finalist in the Southeast
Force Marketing is entering a defining chapter as they have evolved from a legacy automotive agency into a modern, data-powered marketing tech partner driving growth, loyalty, and national recognition Force Marketing Atlanta, May 23, 2025 (GLOBE NEWSWIRE) -- Force Marketing, a data-driven technology and marketing leader in the automotive industry, has been named a 2025 Georgia Fast 40 honoree by ACG Atlanta and celebrates CEO John Fitzpatrick's nomination as a finalist for Ernst & Young's Entrepreneur of the Year® Southeast Region. The recognitions mark a breakout moment for the company, which has quietly been growing at a rapid but sustained pace behind the scenes—and is now turning heads across the industry. 'While we're certainly proud of our consistent 25% year-over-year growth for the past three years, we're equally, if not more, excited about our 95% client retention rate,' said Fitzpatrick. 'That's the real foundation of our momentum. Our OEM and dealer partners are growing with us, and we're bringing even more dealers into the fold. That kind of impact is what makes milestones like these award recognitions truly meaningful.' Long known as a legacy name in automotive marketing, Force is rewriting the playbook with a unified data tech stack–including its automotive-specific CDP, Audience IQ–that supports both variable and fixed operations. The company's acquisition of GSM (Gulf States Toyota's longtime marketing partner) in 2021 was a major turning point, giving Force unmatched depth in after sales loyalty and lifecycle marketing. Audience IQ houses a full-stack suite of solutions including DRIVE (streaming CTV pre-market & in-market audiences), Conquest Connect, Recapture and ATOM, Force empowers dealers with proprietary audience targeting, dynamic creative and end-to-end retention tools that drive results across every dealership department. 'Our growth story is powered by people,' added Fitzpatrick. 'We have world-class team member retention—over 95% for the last three years—all while operating fully remote with 115 team members across 21 states and counting. Our team is the secret sauce behind every milestone, every innovation, and every client success story.' As Force expands and continues delivering results for OEMs and dealer groups across the country, one thing is clear: this isn't just growth— it's evolving the way dealers connect with their customers. About Force Marketing Founded in 2006, Force Holdings, LLC is a leading marketing technology provider to the automotive industry whose family of brands includes: Force Marketing, WeDrive Automotive and Gulf States Marketing (GSM). Headquartered in Atlanta with over 110 team members strategically positioned all over the U.S., the Force Family of Brands focuses on partnering and fostering relationships with dealers and OEMs nationwide to maximize ROAS, speed to market and improved lifetime customer value metrics. More information about Force Marketing's comprehensive suite of tech-enabled products can be found at Attachment Force Marketing CONTACT: Media Contacts: Kerry Crump, kcrump@ Kelly Frommer, kfrommer@ in to access your portfolio
Yahoo
13-05-2025
- Automotive
- Yahoo
KBRA Assigns Preliminary Ratings to Drive Auto Receivables Trust 2025-S1
NEW YORK, May 13, 2025--(BUSINESS WIRE)--KBRA assigns preliminary ratings to two classes of notes issued by Drive Auto Receivables Trust 2025-S1 ("DRIVE 2025-S1"), a re-securitization of the certificate (the "Underlying Certificate") issued from the Drive Auto Receivables Trust 2021-3 auto loan transaction ("DRIVE 2021-3" or the "Underlying Securitization Transaction"). The DRIVE 2025-S1 Class R1 and Class R2 Notes will be collateralized by the Underlying Certificate. The Underlying Certificate represents the residual interest in DRIVE 2021-3 and is backed by the difference between the DRIVE 2021-3 remaining collateral balance of $258,836,019 less the DRIVE 2021-3 Class D notes outstanding of $153,572,273 equal to $105,263,746 (the "Underlying Overcollateralization Amount") plus amounts available in the DRIVE 2021-3 Reserve Fund (the "Underlying Reserve Account Balance") of $15,243,820. The DRIVE 2025-S1 Class R1 and R2 Notes will also benefit from the DRIVE 2025-S1 Reserve Account which will be equal to $445,000. As of May 13, 2025, the Class R1 notes will have 45.19% enhancement and the Class R2 notes have 26.51% enhancement. The enhancement for the Class R1 and R2 notes consists of the sum of (i) overcollateralization which is the difference between the sum of the overcollateralization and the reserve account of the underlying transaction (the Underlying Certificate) of $120,507,566 minus the sum of the Class R1, Class R2, and Class RR notes ($89,000,000) equal to $31,507,566, (ii) in the case of the Class R1 notes, subordination of the Class R2 notes and (iii) the DRIVE 2025-S1 reserve account, divided by the Underlying Certificate. DRIVE 2025-S1 will issue three classes of notes that are collateralized by cash flows from the Underlying Certificate. The collateral for DRIVE 2021-3 is a pool of mostly subprime automobile installment contracts. As of March 31, 2025, the auto receivables had an average current principal balance of $13,306, weighted average (WA) interest rate of 17.49%, and WA original and remaining term of 72 and 30 months, respectively and were made to obligors with a WA FICO score of 573. The new/used vehicle mix is 19% and 81% of the collateral balance, respectively. SC was founded in 1981 in the state of Illinois and is a wholly owned subsidiary of Santander Holdings USA, Inc. ("SHUSA"). SHUSA is a wholly owned direct subsidiary of Banco Santander, S.A. ("Santander"). Headquartered in Dallas, Texas, SC originates prime and near-prime automobile receivables primarily by purchasing automobile installment sale contracts from dealers under a dealer agreement, which includes guidelines and procedures of the purchasing and origination process. SC also originates its auto receivables through its direct lending platform whereby applications are submitted to SC electronically and through its pass-through arrangements with third parties which direct applications to SC. In addition to its these programs, SC is a finance provider for FCA US LLC ("Stellantis") since 2013, and in April 2022, extended the agreement through 2025. In June 2022, SC partnered with Mitsubishi Motors North America, Inc. in a preferred lender program for consumer auto loans, auto leases and dealer loans. KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction's underlying collateral pool, the proposed capital structure and SC's historical default and recovery data. KBRA considered its operational review of SC as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies ABS: Auto Loan ABS Global Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009389 View source version on Contacts Analytical Contacts Hollie Reddington, Senior Director (Lead Analyst)+1 Brockton Bowers, Associate+1 Melvin Zhou, Managing Director (Rating Committee Chair)+1 Business Development Contact Arielle Smelkinson, Senior Director+1 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
