FedEx Corporation | $FDX Stock | Shares Down In After Hours Trading In Spite Of Positive Earnings Numbers


FedEx Corporation (NYSE: FDX)



FedEx Corporation (FDX), a global shipping company yesterday reported their fourth quarter fiscal year 2016 financial results. FedEx reported fourth quarter earnings of $3.30 per share which beat analyst expectations of $3.28 per share. FedEx reported fourth quarter revenues increased 7.1% year over year to $13 billion which beat analyst expectations of $12.77 billion.


FedEx Corporation  CEO and CFO Comments

“Fiscal 2016 was a successful year for FedEx in many ways,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “Of particular note was our corporate operating margin improvement. Our May 25 acquisition of TNT Express capped a historic year of significant accomplishments that benefited shareowners, team members and customers, and strongly positions FedEx for long-term profitable growth.”


“Our strong operating cash flow generation allowed us to invest in FedEx’s future this past year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “We executed on numerous capital projects and completed the acquisition of TNT Express, our largest ever. We were especially pleased with FedEx Express’s continued improvement in operating margin, which was 11.3% in the fourth quarter.”  Business Wire


FDX Technical Analysis

FDX Chart

FDX opened trading yesterday at $164.55 which was up from the previous days trading of $164.47. FDX closed trading yesterday at $163.95 and slipped down after market to $162.11, equivalent to a 1% decrease from the closing price. Taking a look at the daily chart we can see the last time FDX traded below these levels was on June 16th when it traded at $161.87 . Taking a closer look at the daily chart we can see that FDX has been in a trading range in between $157 and $168 dating back to March 17th. FDX has a float of 247.96 million shares and traded 1.44 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see FDX open trading on Wednesday below $162.70 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company’s FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; international trade advisory services, such as assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information in various customs areas; and offers supply chain solutions, including critical inventory logistics, transportation management, and temperature-controlled transportation services. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers high volumes of low-weight and less time-sensitive business-to-consumer packages. The company’s FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping services. As of May 31, 2015, this segment operated approximately 65,000 vehicles and trailers from a network of approximately 370 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, and other back-office support services; Web-enabled mobile devices, which allows customers to track the status of packages, create shipping labels, get account-specific rate quotes, and access drop-off location information; access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and a range of ground shipping and time-definite express shipping services; and packing services, and packing supplies and boxes. The company was founded in 1971 and is based in Memphis, Tennessee.  Yahoo Finance