FedEx (FDX) Q3 Profit 2023
In this photo, the FedEx logo is seen in Washington, D.C., USA on February 16, 2023.
Celal Gunesh | Anadolu Agency | Getty Images
FedEx Thursday raised its full-year earnings guidance as it said cost-cutting measures offset continued weak demand for units, including FedEx Express.
FedEx now expects fiscal 2023 adjusted earnings per share to be between $14.60 and $15.20, up from its previous forecast of $13 to $14. Wall Street expected EPS to be $13.56 per share, according to the Refinitiv consensus.
The company’s shares rose 8% after hours.
Here’s How FedEx Performed fiscal third quarter 2023compared to Refinitiv:
- Earnings per share: $3.41 adjusted against $2.73 expected.
- Income: $22.17 billion vs. expected $22.74 billion
Revenue of about $22.2 billion was down slightly year-on-year from $23.6 billion in fiscal third quarter 2022.
FedEx reported $771 million in net income for the period, up from $1.11 billion in the same quarter a year earlier. Adjusted for one-off items, FedEx posted earnings per share of $3.41, which beat estimates but marked a sharp year-over-year decline from the $4.59 per share reported in the same period last year.
The company confirmed on Thursday that it expects to cut costs by more than $4 billion by the end of fiscal year 2025.
“We continue to act with urgency to increase efficiency and our cost-cutting efforts are becoming more effective, contributing to improved guidance for the current fiscal year,” CEO Raj Subramaniam said in an earnings call.
Last month, Memphis-based FedEx said it would lay off 10% of its employees and directors as part of a broad plan to cut costs amid declining consumer demand. Its plans also include cutting flights and landing planes on the ground, reducing office space and making adjustments to the ground unit for pickup and delivery, CFO Mike Lentz said in the company’s second-quarter earnings report.
FedEx increased shipping rates by an average of 6.9% in January to offset this, and on Thursday reported an 11% increase in revenue per delivery during the third fiscal quarter.
FedEx is expected to inform investors shortly. 5th of April event. The company can also comment on tense contract negotiations with the FedEx Pilots Union. The pilots unanimously approved the union’s permission to sanction the strike, although strikes are a lengthy and complex process in the industry.
This is an evolving story. Stay tuned.