FedEx investors prepare for the Q1 FY2022 earnings and guidance for management. The stock price is flat on the year so far, on track to decline for the fourth consecutive month.
FedEx stock price is on track to register the fourth consecutive month declining. Ahead of the Q1 FY2022, scheduled on September 21, 2021, at 05:30 PM ET, the market expects EPS of $4.99, higher by 2.38% compared to the same period last year.
The company has recently been in the highlights after a labour union challenged the plan to vote on CEO Fred Smith’s compensation package. It operates with a gross profit margin trailing 12 months of 28.26%, slightly lower than the 29.14% sector median. It explains investors’ reluctance to accept the plan for remunerating its CEO with $54 million.
FedEx is a dividend-paying company and, last August, it declared a $0.75 dividend. Its 2021 dividend yield is 1.02% and is expected to reach 1.46% in 2026. Also, annual EPS are expected to reach $31.54 over the same period.
J.P. Morgan Maintains Buy Rating for FedEx Stock Price
A few days ago, one of the investment houses that tracks the FedEx stock price, J.P. Morgan, has maintained its buy rating, with a price target of $346. Most analysts have buy ratings for the FedEx stock price, and none of the 56 analysts tracking the stock has issued a sell rating.
Most recently, FedEx announced a partnership with Salesforce. The two companies plan on delivering fast end-to-end e-commerce and may point to the future path for FedEx. Investors are optimistic about the company’s ability to turn a profit, and the dividend makes it an attractive stock to consider.