FedEx Corp. shares Soared more than 3% in Thursday’s extended session after the delivery and logistics company reported quarterly earnings within analysts’ expectations and said it expects higher earnings next fiscal year.
said it made $558 million, or $2.13 per share, in the fourth fiscal quarter, compared to $1.9 billion, or $6.88 per share, in the prior-year period.
Adjusted for one-time items, the logistics company earned $6.87 per share.
Revenue increased to $24.4 billion from $22.6 billion last year.
Analysts polled by FactSet were calling for adjusted earnings per share of $6.88 on sales of $24.5 billion.
FedEx’s express business improved in part due to fuel surcharges, but volumes fell globally due to pandemic lockdowns and economic and geopolitical uncertainty, the company said. FedEx Ground operating income declined.
The star was FedEx Freight, the company said, whose operating results were “up sharply” thanks to a 28% increase in revenue per shipment.
For fiscal 2023, the company forecast earnings per share of between $22.45 and $24.45 before adjustments related to pension plans and other initiatives and $6.8 billion in investments. Analysts polled by FactSet called for fiscal 2023 EPS of around $22.21.
The priority will be investments to improve efficiency, the company said, “including fleet and facility modernization and increased automation.” FedEx has scheduled an investor meeting for Tuesday.
So far this year, FedEx stock is down about 12%, compared to about 20% losses for the S&P 500 index SPX.
https://www.marketwatch.com/story/fedex-expects-higher-profits-in-fiscal-2023-11656017088?rss=1&siteid=rss FedEx expects higher profits in fiscal 2023