FedEx (FDX) will set the market tone after it posted quarterly earnings that missed expectations. FDX was -7.2% in after-hours trade.
FedEx posted revenue of $22.2 billion, down by 2.6%. FedEx Ground’s operating income benefited from yield improvement, higher volume, and cost cuts. Revenue from FedEx Freight fell but profit still increased thanks to higher yield and efficiency.
Shares face selling pressure because the company expects revenue to decline in the low single-digit percentage in 2024.
After the market closes, BlackBerry (BB), which posted weak results in Q2, will report Q3 data. Expectations are bearish, with an EPS loss of two cents. Revenue fell by 20% in the last quarter. However, BlackBerry had forecast a stronger second half.
BB stock closed at $4.21 on Dec. 19.
Micron (MU) will post results after the market closes. Chip companies already planned to hike prices for 2024. The PC market is preparing for higher solid-state storage drive prices in 2024. Suppliers reduced output to strengthen pricing power.
Tech investors are looking for Micron to forecast a memory chip recovery. In addition, it expects the firm to issue stronger guidance and gross margins meeting estimates. Higher NAND and dynamic random access memory (DRAM”) prices, along with higher utilization rates should lift Micron’s operating profits.
Later this week on Thursday, Carnival (CCL), Carmax (KMX), and Paychex (PAYX) are the companies posting quarterly results.
