Name of opportunity: 👀
FedEx
Great results: 💯
The company’s Q4 earnings were very welcome to investors, as it shared that its earnings per share were $5.41 adjusted compared to $5.35 expected. Its revenue was also higher than had been predicted, with a total figure of $22.11 billion exceeding the expected $22.07 billion.
FedEx also announced that it would be reviewing its freight division again, in continued cost cutting measures. Some have speculated that FedEx may divest its freight operations in a spin-off.
In respnse to this news, FedEx stock has risen by 14.9% since Tuesday evening, after the earnings announcement.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict the price of FedEx Corporation will increase from $293.91 to $308.83 in the next 12 months. If you invested $1000, you might profit $69.59.
FedEx announced structural changes last year, with a plan to transform Express, Ground, Services and other units into a unified Federal Express Corporation. If their ongoing streamlining process is part of their successful Q4 earnings, it makes sense that it may continue to bring future financial growth. The company said last year that it expected that the new unified division will handle all deliveries from June 2024 - if the progress is on track investors may see the benefits before long.
If FedEx Freight does become a spin off, it has been observed by analysts that the parent company and the new spin off often benefit from the split, with the smaller, more agile spin off taking over certain operations and allowing the parent company to refocus.
Package for you: 📦
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively and operating independently, under the FedEx brand. FedEx offers delivery and shipping by air and freight, as well as residential and commercial delivery of smaller parcels. Founded in 1985, the company is based in Pennsylvania, United States.
Which neme?: 🔍
‘Dividend Deadlines’, ‘This Week’s Earnings’
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