FedEx Corporation [NYSE: FDX] has announced its Q4 results and they are stronger than expected. The company has beat analyst expectations in spite of challenges occasioned by the trade war between the U.S and China. For the quarter ending May 2019, the company’s adjusted earnings stood at roughly $5.01 per share. This is much higher than analysts’ expectation of about $4.85 per share. Revenues were also up by roughly 2.9% to stand at $17.8 billion, a figure that also beat analyst expectations.
Bullish sentiment around this stock is also enhanced by the CEO’s remarks regarding the mishandling of packages related to Huawei. He has dismissed the idea that FedEx could be added to the list of unreliable entities in China, a move that would hurt its business. He added that the company is dedicated to complying with Chinese laws and regulations. This is a factor that could be adding to the bullish sentiment around this stock at the moment. That’s because, one of the biggest factors putting a cloud of uncertainty in global trade is the trade war between the U.S and China. It’s especially concerning for companies that are in the spotlight of these two countries. In essence, the reassurance from the CEO seems to be comforting for investors.
From the chart listed below, this stock is likely to trade in bullish territory in the day especially if it can break yesterdays high of $160. In pre-market trading, it is trading up a bit around $158.55. This has pushed it above yesterday’s close of $155.98.
FedEx bullish price action could also be supported by the fact that U.S markets are in the green in pre-market trading.