Boston, MA 09/15/2014 (wallstreetpr) – The financial market would be quite curious for the news from FedEx Corporation (NYSE:FDX) as the company would reveal its first quarter earnings on Wednesday. The reports would be unveiled by Fred Smith, the Chairman and the CEO, of FedEx. The investors are quite interested in this as it would be a quick look of the firm’s progression, for them, whether the business would be able to meet its yearly profit target or not. The first quarter earnings are expected to be $1.96 a share.
As per the Executives the annual per sharing earnings for the FedEx Corporation (NYSE:FDX) is expected to be in the range of $8.5 and $9 this year, compared to $6.75 the last year. The analysts, this year are quite optimistic regarding the results and according to them, if the corporation achieves the expected mark; it means something proactive is going on within the firm.
Reasons For The Positive Predictions
According to The Wall Street Journal, the current year can be a spinner one for the FedEx Corporation (NYSE:FDX) as most of the aspects are in favor of the business. The most prominent one could be the current prices of fuel, which is quite low as compared to the prices last year, during the same quarter. According to Morgan Stanley (NYSE:MS) the overall fuel cost to the company last year was $150 million, which is quite high compared to $85 million this year.
An additional knock should be expected from the increased freight business. As per Kevin Sterling, the analyst from BB&T Capital Markets, it has been observed that the demand for truck drivers has increased and also the shortage. This factor directly adds up to the increased returns of the firm’s freight division.
The other factors, which might play a vital role, are, the express unit of the firm has been streamlined and currently the e-commerce sales are at its peak.
