FedEx (FDX) FY14 Guidance Appears 'Readily Achievable'

This morning FedEx (NYSE: FDX) reported Q4 EPS of $2.13, $0.17 better than the analyst estimate of $1.96. Revenue for the quarter came in at $11.4 billion versus the consensus estimate of $11.44 billion. FedEx issued FY2014 adjusted EPS guidance of up 7 – 13% year-over-year, implying a full-year adjusted EPS range of $6.66 - $7.04 vs the 2014 consensus of $7.36.

Commenting, Deutsche Bank analyst Justin Yagerman said, "The company also indicated that it remains focused on expanding margins in all of its business units, though the pace of this improvement is expected to be moderate in FY2014, before accelerating in FY2015. While the adjusted EPS guidance is somewhat disappointing, we note FDX's full-year guidance is readily achievable and creates a lower hurdle rate for success if the economy were to improve at a faster-than-expected rate (FDX is assuming U.S. and world GDP of 2.3% and 2.7%, respectively in its forecast).

Deutsche Bank has a Buy rating on FedEx with a price target of $125.00

For an analyst ratings summary and ratings history on FedEx (NYSE: FDX) click here. For more ratings news on FedEx click here.

Shares of FedEx closed at $99.48 yesterday.

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