FedEx Corporation Is Delivering All Time Highs

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Source: Thinkstock

Source: Thinkstock

FedEx Corporation (NYSE:FDX) stock is about to reach new all time highs. Most everyone is familiar with the company and has probably done business with them. As you probably know, the company provides transportation, e-commerce, and business services in the United States and internationally. What you may not know is that it operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage, and ocean and air freight forwarding services, customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports. Further, it provides international trade advisory services, including assistance with the customs-trade partnership against terrorism program, as well as publishes customs duty and tax information in various customs areas. In addition, it offers supply chain solutions, including critical inventory logistics, transportation management, and temperature-controlled transportation services.

The FedEx Ground segment provides business and residential ground package delivery services; and engages in the consolidation and delivery of high volumes of low weight and less time sensitive business-to-consumer packages. It primarily serves customers in the small-package market in North America. The FedEx Freight segment offers less-than-truckload freight services, as well as freight shipping services. As of May 31, 2013, this segment operated approximately 59,000 vehicles and trailers from a network of 370 service centers. Finally, the FedEx Services segment provides sales, marketing, information technology, communications, customer service, and other back-office support services; packing services, and packing supplies and boxes. On the back of the company delivering some stellar earnings, I am reiterating my buy recommendation and amending my price target to $163.

Just how good were earnings? Well, the company reported of $2.46 per diluted share for the fourth-quarter ended May 31. Last year’s fourth-quarter earnings were $2.13 per diluted share, excluding a $0.98 per diluted share business realignment program charge and a $0.20 per diluted share non-cash aircraft impairment charge at FedEx Express. Including last year’s charges, earnings were $0.95 per diluted share. Thus, quarter over quarter, earnings more than doubled when you factor in these charges last year.

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