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We'll Get One Last Unconventional Economic Indicator Before Tomorrow's Fed Announcement

Sam Ro
fedex sorting facility service workers jobs

REUTERS/Lance Murphey

At 7:30 AM ET on Wednesday, FedEx will release its fiscal Q4 financial results.

Analysts are expecting the package delivery company to announce earnings of $1.95 per share, down from $1.99 per share a year ago.

FedEx ships a broad array of goods, and it has footholds all over the world.  As such, the company is widely considered to be a reliable bellwether of global economic activity.

So, you can bet that FedEx's investors won't be the only ones following this announcement.

Citi's Christian Wetherbee notes that air freight data from some of FedEx's major overseas hubs are showing growth, but slowing growth.

"The air cargo terminals at Hong Kong, Shanghai, and Frankfurt collectively posted 0.9% YoY growth in F4Q (Mar- May), a deceleration from 2.2% growth posted in F3Q (Dec-Feb)," said Wetherbee who believes the company will likely announce capacity cuts overseas.

However, he also expects the company to benefit from falling jet fuel prices.

Wetherbee has a Buy rating on the stock with a $114/share price target.

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