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- FedEx is scheduled to report third-quarter earnings after the market's close on Tuesday.
- Shares of FedEx have come under pressure in recent months as Amazon is increasingly viewed as a viable threat to the logistics company.
- Last quarter, the company cut its 2019 forecast, citing economic uncertainty around the world.
- Watch FedEx trade live.
Delivery giant FedEx is set to release its third-quarter results after the bell on Tuesday. Here's what Wall Street analysts surveyed by Bloomberg are expecting:
- Adjusted earnings per share (EPS): $3.10.
- Revenue: $17.6 billion.
The report comes after FedEx slashed its earnings forecast last quarter, citing economic uncertainty in Europe and Asia. FedEx Express said it would not achieve its operating income goal of $1.5 billion by fiscal 2020.
Over the last year, shares have come under significant pressure, falling 27%, as analysts increasingly see Amazon's efforts in the logistics space as a viable threat.
FedEx's relatively low valuation has gained some attention recently as investors "debate the company's path forward on earnings," said Barclays analyst Brandon Oglenski in a note to clients sent out on Monday.
Shares are currently trading at 10 times forward earnings, versus the S&P 500's ratio of just over 16 times. In other words, the stock may be viewed as cheap relative to the broader market.
"While we agree valuation is tempting, management will have to provide a clearer picture for improving European results while also dealing with slower global demand and a likely higher capital spending outlook," Oglenski wrote.
Now read more FedEx coverage from Business Insider:
- Amazon took over the $176 billion market for cloud computing. Now it's using the same playbook in logistics.
- The internet is obsessed with a FedEx employee who cruised through Manhattan on a delivery cart - but FedEx says the speed-meister broke company standards
- FedEx's new service delivers online orders hours after they're placed - and it shows that Amazon Prime isn't special anymore
Markets Insider FedEx shares.
