FedEx beats analyst expectations in Q4 with increased revenue and cost-cutting measures

From CNBC: 2024-06-25 18:07:40

FedEx shares surged over 15% following a strong fiscal fourth quarter report beating analyst expectations. The company reported earnings per share of $5.41, slightly higher than the expected $5.35, with revenue reaching $22.11 billion, surpassing the anticipated $22.07 billion. Despite a drop in full-year revenue, FedEx’s cost-cutting measures are on track to save $4 billion by fiscal 2025.

FedEx saw a decrease in net income but an increase in revenue for the fourth quarter. Capital spending decreased by 16% in fiscal 2024, and the company plans on achieving low-to-mid single-digit revenue growth for fiscal 2025. Their DRIVE initiative aims to consolidate operations, including merging delivery companies into Federal Express Corporation.

Express segment margins remained stagnant at 4.1% in the fourth quarter, with an operating margin of 2.6% for fiscal 2024. FedEx is focused on improving Express segment performance in the upcoming fiscal year. Despite dividend increases and positive changes, concerns linger after losing the USPS contract to UPS, estimating a $500 million impact in fiscal 2025.



Read more at CNBC:: FedEx (FDX) earnings Q4 2024