Results of FedEx (FDX) Q3 2023

This photo shows the FedEx logo on February 16, 2023 in Washington DC, USA.

Celal Gunes | Anadolu Agency | Getty Images

FedEx lifted its full-year earnings guidance on Thursday as cost-cutting measures offset continued weakness in demand at units like FedEx Express.

FedEx now expects fiscal 2023 adjusted earnings per share to be between $14.60 and $15.20, up from a previous guidance of between $13.00 and $14.00. Wall Street had expected full-year earnings per share of $13.56, according to Refinitiv consensus estimates.

The company’s shares are up 8% in after-hours trading.

Here’s how FedEx fared third quarter of fiscal year 2023compared to refinitive:

  • Earnings per share: $3.41 adjusted vs $2.73 expected
  • Revenue: $22.17 billion versus $22.74 billion expected

Revenue of approximately $22.2 billion marked a slight year-over-year decrease of $23.6 billion in the third quarter of fiscal 2022.

FedEx reported net income of $771 million for the period, compared to $1.11 billion in the same quarter last year. Adjusted for one-time items, FedEx reported earnings per share of $3.41, beating estimates but marking a dramatic decrease from $4.59 per share compared to the year-ago period.

The company reiterated Thursday that it expects more than $4 billion in cost reductions by the end of fiscal 2025.

“We have continued to urgently strive to improve efficiency and our cost measures are taking effect, providing an improved outlook for the current fiscal year,” CEO Raj Subramaniam said in a earnings statement.

Last month, Memphis-based FedEx announced it was laying off 10% of its officers and directors as part of its far-reaching plan to cut costs amid falling consumer demand. The plans also include cutting flights and grounding aircraft, reducing office space and ground unit adjustments in pickup and delivery, CFO Mike Lenz said on the company’s second-quarter earnings call.

FedEx increased its shipping rates by an average of 6.9% in January to offset this and on Thursday reported an 11% increase in revenue per shipment in the fiscal third quarter.

FedEx is expected to bring investors an update April 5th Case. The company was also able to comment on the tense contract negotiations with the pilots’ union FedEx. The pilots unanimously agreed with the union to authorize a strike, even though strikes are a long and complicated process in the industry.

This is an evolving story. Check for updates again. Results of FedEx (FDX) Q3 2023

Sportsasff is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button