PREVIEW: FedEx seen delivering earnings decline on Thurs
** FedEx FDX.N shares edge up 0.4% to $274.14 on Thurs as parcel giant slated to report fiscal Q2 results after the bell, as investors eye holiday season demand
** FDX and rival United Parcel Services UPS.N well-positioned for on-time U.S. holiday gift delivery performance to approach 100%, weather permitting, said Satish Jindel, founder of shipping consultancy ShipMatrix, earlier this month
** Jindel helped found the delivery firm that became FedEx Ground
** Even so, both firms have been grappling with stubbornly weak demand since the COVID-19 e-commerce bubble deflated in 2022
** On Sept 19, FDX reported a sharp drop in adj profit and trimmed full-yr forecasts after its customers continued to trade down from speedy, pricey delivery to cheaper, slower options
** In the next session, FDX shares sank 15% to $254.64
** For qtr ended Nov, Wall Street analysts on avg see FDX posting adj EPS of $3.90 vs $3.99 a yr-ago, and expects rev of $22.1 bln, down 0.3% y/y, per LSEG data
** In the past 8 reporting periods, co has topped earnings consensus 6 times, but missed expectations by 24% in the most recent qtr
** Of 33 analysts covering FDX, recommendation breakdown is 7 "strong buy", 15 "buy", 9 "hold" and 2 "sell" recommendations; median PT is $315.73
** Including move on the session, FDX shares up 8.4% YTD vs ~24% gain in S&P 500 .SPX and fractional advance in Dow Jones Transport Average .DJT
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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