5:48 p.m. EST. updated on
Fedex (fdx) – A report from FedEx Corporation issued a strong near-term outlook and on Thursday released better-than-expected fourth-quarter results as internal cost savings helped offset lower shipping demand related to the global economic slowdown.
FedEx said adjusted earnings per share for the three months ended May were $6.87 per share, up 37.1% from the same period last year, which was broadly in line with the Street consensus forecast of $6.87 per share. was. Consolidated revenue rose 8.1% year over year to $24.4 billion, according to FedEx, beating analyst estimates of $24.05 billion.
Looking ahead to the group’s upcoming fiscal year, which ends in February 2023, FedEx said it expects earnings in the region of $22.45 to $24.45 per share, well above Refinitiv’s guidance, adding, that the last six are expected to buy back about $1.5 billion stocks. months of the coming financial year.
CEO Raj Subramaniam said, “Our financial performance in fiscal 2022 was a result of our team’s ability to adapt to many unforeseen challenges and is a testament to FedEx’s value proposition and execution of our long-term strategy.”
“Our fundamental investments have created the conditions for a strong 2023 financial year. Moving forward, our focus will be on revenue quality and our service costs will be lower. I am honored to lead our dedicated global team that enables FedEx to lead the industry from a strong position.”
scroll to continue
FedEx shares are up 2.05% in after-hours trading shortly after the earnings release, pointing to an opening price of $232.80 each Friday.
Last week, the group vowed to add three new members to its board of directors while reducing its projected capex-to-sales targets to return more money to investors and align executive pay more closely with shareholder returns. do.
FedEx also increased its quarterly dividend by more than 53% to $1.15 per share, sending the stock to its highest one-day percentage gain since the mid-1980s.
Smith, the 77-year-old founder and former CEO, was replaced by chief operating officer Raj Subramaniam in late March.
Subramaniam, a longtime FedEx executive who has worked hard on the conglomerate’s complex supply chain, will take over as CEO on June 1.
Subramaniam, 54, faces several challenges in his new role as investors seek to improve profit margins in FedEx’s ground division, which lags behind rival United Parcel Service (USP).UPS) – United Parcel Service Inc., in the face of rising labor and fuel costs. get report.