FedEx (FDX) is set to report its fiscal second-quarter earnings after the market closes Thursday, with analysts expecting another quarter showing a small decline in revenue before the shipping giant returns to growth.

Analysts are largely bullish on FedEx's stock, with 11 of the 15 analysts who follow FedEx and are tracked by Visible Alpha rating it as a "buy," along with three "hold" ratings and one "sell." Their average price target of about $307 would imply roughly 12% upside from Thursday's intraday price of $273.94. The stock has gained about 8% in 2024 so far.

FedEx is projected to report second-quarter revenue of $22.14 billion, down slightly from last year's $22.17 billion. Net income, however, is expected to rise to $924.5 million as the shipping company has worked to 澳洲幸运5官方开奖结果体彩网:cut costs.

After the second quarter, estimates compiled by Visible๊ Alpha suღggest FedEx could return to year-over-year revenue growth in the coming quarters.

'One of the Most Consequential Quarters in Years'

As part of its restructuring effort announced last year, 澳洲幸运5官方开奖结果体彩网:FedEx said it would bring FedEx Ground, Services, and𝔉 Express under the same corporate umbrella, while FedEx Freight remained a separate business.

Once the restructuring was completed, FedEx said in its fourth-quarter report in June that it was "conducting an assessment of the role of FedEx Freight and our portfolio structure," with the review expected to be done by the end of 2024, according to a transcript provided by AlphaSense.

Citi analysts said the coming earnings report "could be one of the most consequential quarters in years" for FedEx, and suggested spinning off the Freight business into a standalone company could "unlock value," but may not be the best option for the long term.

UPDATE—Dec. 19, 2024: This article has been updated to reflect more recent analyst estimates and share price information.