FedEx shifts fiscal year-end to align with calendar year

Published 30/01/2025, 23:34
Updated 30/01/2025, 23:36
FedEx shifts fiscal year-end to align with calendar year

This strategic move is expected to provide a clearer alignment of FedEx (NYSE:FDX)’s financial reporting with the calendar year, which is standard practice for many corporations. The change may also aid in comparative analysis and benchmarking within the industry and with investors who track the company’s performance.FedEx, with its headquarters at 942 South Shady Grove Road, Memphis, Tennessee, operates under the Air Courier Services industry and is incorporated in Delaware. Trading at a P/E ratio of 16.94, the company has maintained dividend payments for 23 consecutive years and currently offers a 2.01% dividend yield. The company is well-known for its rapid and reliable package delivery services worldwide.The information is based on a press release statement filed with the U.S. Securities and Exchange Commission. The company’s commitment to corporate governance and management transparency is evident in these regular filings, which provide stakeholders with up-to-date and accurate financial information. According to InvestingPro’s Fair Value analysis, FedEx appears slightly undervalued at current levels. Investors and analysts will likely monitor how this change in fiscal year-end may influence FedEx’s financial reporting and business operations in the future. For comprehensive insights into FedEx’s valuation and performance metrics, access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

The global courier delivery services giant will file a Transition Report on Form 10-K for a seven-month period, covering June 1, 2026, to December 31, 2026, to facilitate the transition. For the fiscal year 2026, FedEx will report from June 1, 2025, to May 31, 2026, as usual, followed by a quarterly report for the third quarter of calendar 2026, from July 1, 2026, to September 30, 2026. This quarterly report will also include separate financial data for the one-month periods ending June 30, 2026, and 2025. With 15 analysts currently covering the stock and providing regular updates, InvestingPro subscribers can access detailed analyst forecasts and recommendations.

This strategic move is expected to provide a clearer alignment of FedEx’s financial reporting with the calendar year, which is standard practice for many corporations. The change may also aid in comparative analysis and benchmarking within the industry and with investors who track the company’s performance.

FedEx, with its headquarters at 942 South Shady Grove Road, Memphis, Tennessee, operates under the Air Courier Services industry and is incorporated in Delaware. The company is well-known for its rapid and reliable package delivery services worldwide.

The information is based on a press release statement filed with the U.S. Securities and Exchange Commission. The company’s commitment to corporate governance and management transparency is evident in these regular filings, which provide stakeholders with up-to-date and accurate financial information. Investors and analysts will likely monitor how this change in fiscal year-end may influence FedEx’s financial reporting and business operations in the future.

In other recent news, FedEx has announced a strategic spin-off of its Less-Than-Truckload (LTL) division, a decision that has been perceived as a potential value unlock by financial firms such as Stifel and Loop Capital. The company has also announced a debt exchange offer, with the new notes to be guaranteed by the same subsidiaries that currently guarantee the existing notes. Despite adjusting its annual EPS guidance downward, FedEx maintains solid fundamentals with an EBITDA of $10.9 billion over the last twelve months.

On the other hand, UPS reported a fourth-quarter adjusted earnings beat, with earnings of $2.75 per share compared to the predicted $2.53. However, the company projected 2025 revenue to be $89 billion, significantly below the average analyst projection of $94.9 billion, which has impacted the industry’s outlook, including FedEx.

Analysts have responded to these developments with various adjustments to their targets for both FedEx and UPS. Bernstein SocGen Group, for example, raised its UPS price target from $172 to $179, maintaining an Outperform rating. Similarly, TD Cowen raised its FedEx target to $337, while Stifel raised its FedEx target to $368. However, Stephens reduced its FedEx target to $345 but maintained an overweight rating. These recent developments provide investors with a snapshot of the changing landscape for both FedEx and UPS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.