Ahead of the quarterly earnings report, FedEx (FDX) stock is down 0.73%, but it has been climbing for several days.

On Tuesday evening, the shipping company will be reporting its 4th quarterly earnings. That closes off the fiscal year for the company, so its 2025 guidance will be issued as well with this report to take the company into 2025.

The projected earnings for the 4th quarter for FedEx are $22 billion, with profits per share of $5.34. That would be up from this time last year, when the company reported sales of $21.9 billion and earnings per share of $4.94.

Even though the expectation is that earnings will be up, the stock price is dropping, but not substantially. Investors are anticipating a decent but not stellar showing from the company, and they may be anticipating guidance that is mildly positive.

Keep in mind that in this high inflation period the US economy is in, the profit margins are tight for companies and fiscal year guidance has to be very promising to spur share price growth. A few companies like Microsoft and Nvidia have done very well despite those issues, but others have suffered tremendously even with mildly positive earnings reports.

FedEx Profits and the Future

For 2025, FedEx is expected to gain 20% per share, according to Wall Street predictions. Their profits for this fiscal year for 2024 are expected to be around $17.77 billion. Those are very decent profits from this year, but it may not be enough to help the company stock to get a boost.

We anticipate a small stock boost for FedEx, but it could surprise us. Obviously, investors are somewhat timid about the stock and are backing off, but not in droves. They are cautious about where the company is headed and especially its short term stock odds.

Even if FedEx stock pulls back after this earnings report, we expect it to climb later on in the year as positive guidance proves true and the company plays on its strengths.