FedEx Corporation (FDX) Earnings: What To Watch For

With FedEX Corporation (NYSE:FDX) shares trading near all-time-highs, investors will be closely watching the company’s fiscal third quarter earnings, coming out on Tuesday. FDX has been a big mover following its earnings releases. Over the past few years, the company exceeded market-expectations most of the times; however, it fell-short of both earnings and revenue expectations in the previous quarter. But that did not discourage investors, who have been bidding-up the stock, impressed by its growing earnings and strong outlook, based on analysts’ forecasts. Sell-side analysts are expecting EPS and revenue of $2.62 and $14.99 billion for the quarter. That compares to a-year-ago quarter’s reported EPS of $2.51 and $14.65 billion in revenue.

While acquisition of TNT in May last year will boost its results, organic growth would still be a key metric. Other factors to watch would be the impact on margins as crude oil prices staged a recovery of late and how a strengthening US dollar affected its top-line. Guidance for the fiscal fourth quarter and for the rest of 2017 would be key in investors deciding to book profits or choose to hold/buy for further growth.

Other notable earnings in the week ahead

Nike Inc (NYSE:NKE): After multiple years of beating the S&P 500 index, shares of the world’s largest retailer of athletic apparels and shoes dropped nearly 4% over the past year as sales plateaued, compared to the index’s gains of more than 16%. Nike is also expected to report fiscal third quarter earnings on Tuesday (03/21). Analysts expect $0.53 in EPS and $8.47 billion in revenue, compared to a year-ago-quarter’s EPS of $0.55 and revenue of $8.03 billion.

Lennar Corporation (NYSE:LEN): Lennar, one of the largest US-homebuilders and the barometer of the country’s housing market, will also report quarterly earnings on Tuesday. Lennar’s fiscal first quarter results will be weighed against expectations of $0.57 in EPS and $2.03 billion in revenue. In the same quarter last year, Lennar delivered an EPS of $0.63 and $1.99 billion in revenue. Closely tracking S&P-500’s performance, LEN shares are up nearly 14% over the past year and currently trade near 52-week highs, making this earnings performance and guidance for the rest of FY’17 highly important.