As per analysts’ average estimate, Q3 revenue is expected to be $22.04 billion, which is broadly unchanged year-over-year and sequentially. Meanwhile, analysts predict a 1.2% increase in adjusted earnings to $3.45 per share.
In a sign that the strain on the top line would continue in the near term, FedEx executives recently forecast a low-single-digit percentage decline in revenues for fiscal 2024. Meanwhile, they reaffirmed full-year earnings per share guidance in the range of $17 to $18.50, amid continued margin expansion.
In the second quarter, FedEx’s earnings fell short of expectations after beating for five straight quarters. At $3.99 per share, adjusted profit was up 25% year-over-year in Q2. Revenues decreased 3% from last year to $22.2 billion, mainly due to a 6% drop in revenues of the core Express division.