Prime Highlights
- FedEx posted adjusted earnings per share of $6.31 against analyst expectations of $5.96, with revenue of $25.01 billion beating forecasts of $24.04 billion.
- CEO Raj Subramaniam said the results far exceeded the company’s initial fiscal year outlook, with strong free cash flow reinforcing confidence in the company’s strategy.
Key Facts
- FedEx is a US-based global logistics and delivery company; its freight division spun off into a separately listed entity called FedEx Freight in the first week of June.
- FedEx reported full-year revenue of $94.7 billion, up from $87.9 billion the prior year, and projected 11% revenue growth for the year ahead.
Background
FedEx reported fourth-quarter earnings that exceeded Wall Street expectations on both revenue and profit, closing out the last quarter that included its freight business before a major corporate separation.
The company posted adjusted earnings per share of $6.31 against analyst expectations of $5.96, while revenue came in at $25.01 billion, ahead of the $24.04 billion analysts had forecast.
FedEx Express revenue reached $21.57 billion for the quarter ended the final week of May, beating estimates of $20.75 billion. The company also recorded a 3% year-over-year rise in domestic volume and a 3% increase in US priority volume.
Net income for the quarter stood at $1.6 billion, or $6.60 per share, compared with $1.65 billion, or $6.88 per share, in the same period last year. For the full fiscal year, revenue rose to $94.7 billion from $87.9 billion the prior year.
CEO Raj Subramaniam told analysts that the momentum across the business reflected a working strategy, adding that results far exceeded the company’s initial outlook for the year and delivered strong free cash flow.
FedEx Freight spun off into a separate publicly traded company in the first week of June. As part of the spinoff, FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation. Despite the strong results, FedEx shares fell roughly 6% in after-hours trading.
Fuel costs jumped 66% year on year to $1.43 billion, though executives said demand remained unaffected. US pricing rose 10% during the period. Looking ahead, FedEx projected 11% full-year revenue growth and adjusted diluted earnings per share of between $16.90 and $18.10.
