FedEx: Continued strong EPS growth; story on track - Oppenheimer
Oppenheimer remains bullish on the FedEx story following solid execution and continued strong EPS growth in F3Q15. Following strong F3Q15 performance FedEx tightened FY15 adj'd EPS guidance to $8.80-8.95 (+30% to +32% y/y; from $8.50-9.00) on continued e-commerce tailwinds/profit improvement plan progress partly offset by F4Q15 variable comp (execution reward), fuel and inferred international growth conservatism. Anticipating momentum primarily via the aforementioned drivers to incite adj'd EPS growth in excess of 20% y/y in FY16, they reiterate their Outperform rating/$200 target.