FedEx Corporation (FDX) provides a broad range of transportation, e-commerce, and business services. The company’s global network includes the world’s largest all-cargo air fleet and connects more than 99% of the world’s gross domestic product.
The company generated 50% of its revenue from FedEx Express, 37% from FedEx Ground, and 9% from FedEx Freight during its fiscal third quarter. Within FedEx Express, the company generated 77% of its revenue from Package and the remaining from Freight.
Economic Growth Drives Earnings
FedEx reported fiscal third quarter revenue that rose 22.9% to $21.5 billion, beating consensus estimates by $1.56 billion, with non-GAAP earnings of $3.47 per share, beating consensus estimates by 23 cents.
Analysts have been bullish on the stock ahead of its upcoming earnings announcement on June 24, 2021. For example, Stephens analyst Jack Atkins boosted his price target and reiterated an Overweight rating on June 16, 2021, saying that he anticipates strong results and encouraging FY22 guidance. That said, high expectations could dampen the reaction to a strong earnings report for the quarter.
The company raised its quarterly dividend by 15.4%, representing a 1.04% forward yield. The dividend is payable on July 12, 2021 to shareholders on record as of June 28, 2021.
Want to keep track of all dividend increases? Subscribe to Dividend.com and have complete access to our exclusive dividend increases list here.
