FedEx Corporation Stock Buy Recommendation Reiterated (FDX)
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- Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- FDX's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $1,818.00 million or 14.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.07%.
- FEDEX CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FEDEX CORP increased its bottom line by earning $6.41 versus $4.57 in the prior year. This year, the market expects an improvement in earnings ($6.99 versus $6.41).
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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