5 minutes ago
FedEx and General Mills are the leading premarket moving companies
FedEx is the story of the morning on Wall Street, with delivery inventory plunging 10% before the bell following a disappointing second-quarter report.
Here are some other notable premarket movers:
General Mills – Shares of the food company fell 3% after General Mills reported fiscal second-quarter sales that fell short of expectations and said organic net sales fell 2% year-over-year despite higher prices.
Salesforce – The technology stock fell 1.3% after Wells Fargo downgraded Salesforce from Overweight to Equal Weight.
The full list can be found here.
–Jesse Pound
An hour ago
Mortgage demand is falling despite a renewed decline in interest rates
According to the Mortgage Bankers Association’s seasonally adjusted index, mortgage demand fell last week compared to the previous week, even as interest rates continued to fall.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased from 7.07% to 6.83%, with points on loans at 20% down from 0.59 to 0.60 (inclusive). processing fee) payment increased, the group said on Wednesday. Despite the recent decline, rates are still much higher than at the start of the Covid pandemic.
–Lisa Rizzolo
An hour ago
Here’s what analysts are saying about FedEx after disappointing earnings and outlook
Shares of FedEx experienced a dramatic decline after the company cut its full-year revenue outlook as weaker demand impacted sales. The packaging company’s adjusted earnings per share and revenue also fell short of estimates, causing shares to fall 9% after the market closed on Tuesday.
The stock continued to plummet Wednesday morning, losing more than 12% in premarket trading. This is what some analysts say about the company:
- Bank of America: Analyst Ken Hoexter maintained his Buy rating and lowered his price target to $313, implying an upside potential of 11.8% from the stock’s last close. Although margin expansion was weak and the company expects lower margins next year as well, the analyst said he sees strength in FedEx’s “DRIVE” program, which focuses on reducing costs by improving operational efficiency.
- Wells Fargo: Analyst Allison Poliniak-Cusic expects FedEx’s earnings results to pressure shares, but also said progress on cost-cutting initiatives continues to support the company’s fiscal 2024 outlook. Once the transformation is complete, Wells Fargo expects to have a “strong cash flow profile” with greater confidence, potentially leading to a higher valuation. The company maintained its equal weight rating on the stock.
- Barclays: Analyst Brandon Oglenski maintained his Overweight rating and lowered his price target to $310. He pointed to particularly weak performance in the company’s Express division, its largest, as it suffered from lower demand and customers gravitated toward cheaper services. Improving margin would require a 20% to 30% reduction in capacity in ongoing operations, which analysts said “simply does not appear to be possible in management’s current plans.”
—Pia Singh
14 hours ago
FedEx loses 9% on disappointing earnings
FedEx shares fell 9% after the package delivery company reported disappointing quarterly results and downgraded its revenue outlook.
Adjusted earnings came in at $3.99 per share, falling short of the $4.18 expectations of analysts surveyed by LSEG. The company reported revenue of $22.17 billion, compared to the estimated $22.41 billion.
See grafic…
FedEx stock plunges after earnings
FedEx also said it expects revenue to decline in the low single digits for the fiscal year. That’s a decline from previously forecast flat year-over-year sales.
—Samantha Subin, Leslie Josephs
14 hours ago