Here’s Why FedEx Corporation (FDX) Declined in the Third Quarter

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -15.88% compared to a return of -4.88% for the S&P 500 Index and -5.62% for the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Longleaf Partners discussed stocks like FedEx Corporation (NYSE:FDX) in the Q3 2022 investor letter. Based in Memphis, Tennessee, FedEx Corporation (NYSE:FDX) is a transportation company. On October 18, 2022, FedEx Corporation (NYSE:FDX) stock closed at $156.30 per share. One-month return of FedEx Corporation (NYSE:FDX) was -0.70% and its shares lost 31.84% of their value over the last 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $40.672 billion.

Here is what Longleaf Partners specifically said about FedEx Corporation (NYSE:FDX) in its Q3 2022 investor letter:

FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was another top detractor in the quarter after a large earnings miss, driven by its overseas express business. The decline in Asia was primarily macro driven, while the European miss was a combination of macro and service quality issues related to the TNT integration. Management is cutting costs and taking steps to address the service issues. To the positive, the US Ground and Freight businesses reported solid earnings growth. These domestic businesses alone are generating almost $15 per share in free cash flow power and are worth $240, significantly more than FedEx’s share price today. In early October, the company announced an acceleration of its previously announced share repurchase program, a strong vote of confidence from management.”

FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the second quarter which was 52 in the previous quarter.

We discussed FedEx Corporation (NYSE:FDX) in another article and shared Leaven Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.