Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 14, 2024

Article Excerpt

FEDEX CORP., $246.43, New York symbol FDX, remains a buy. The company delivers packages in the U.S. and 220 other countries. Due to lower volumes at its air-based Express business, FedEx plans to cut about 2,000 jobs at its European operations. The company expects to pay $250 million in severance and other costs, but the plan should cut between $125 million and $175 million from its annual costs by the end of the fiscal year ending May 31, 2027. To put those amounts in perspective, FedEx earned $966 million, or $3.86 a share, in the quarter ended February 29, 2024. These latest job cuts are in addition to FedEx’s current restructuring plan, which includes merging its FedEx Express (air freight), FedEx Ground, FedEx Services and other smaller operating companies into a single division. These moves will save it $1.8 billion in the fiscal year ending May 31, 2024, and a further $2.2 billion in 2025. Those savings should help lift the company’s projected earnings by about…