FedEx Corp. late Thursday reported adjusted earnings of $3.86 per diluted share in its fiscal 2024 third quarter, well above analysts’ estimates of $3.45 per share, sending shares up sharply in after-hours trading.
The company (NYSE: FDX) said cost cuts and efficiency improvements offset continued macroeconomic weakness. FedEx Express, the company’s air and international unit posted improved operating results despite lower revenue. FedEx Ground’s operating results increased due to lower structural costs and higher base yields. Cost per package was flat.
FedEx Freight, the company’s less-than-truckload unit, posted lower operating results due to lower fuel surcharges, less volume and reduced weight per shipment, the company said.
The company adjusted its full-year fiscal 2024 guidance, moving up the top and bottom ends of its range to $17.25 to $18.25 a share, from $17 to $18 per share. FedEx expects to hit its FY 2024 commitments of $1.8 billion in permanent cost reductions from its DRIVE transformation program.
The company said its board had authorized a new $5 billion share repurchase program, which is in addition to the $600 million in shares that remain available for purchase under a 2021 authorization program.
FedEx shares were up nearly 13% in after-hours trading after rising nearly 2% during the regular session.
Freight Zippy
Solid, at least this company has a plan vs. what we saw with Yellow recently.
When the union choked the life out of Yellow there was little the company could do.
At least Fed Ex can make adjustment based on economic conditions, then once the market shifts, revisit the operations again..
walter fegis
FedEx pilots are in it for themselves, they are the only unionized part of our company! Us FedEx employees think they are already over compensated, time to trim the fat and get rid of half of them!
Mike
From a wallstreet perspective, shareholders clearly love what’s been going on recently and the numbers justify it. Cost cutting and right-sizing their resources is crucial for any company of their size in order to sustain a healthy business. The pandemic created a significant ripple in everyone’s business, and a lot of companies are just now waking up from a “hangover”.
From a customer perspective, there’s a lot of things I dislike about working with Fedex in terms of their systems and overall operations. I prefer UPS for these specific areas on US domestic business, but Fedex has a stronger global network than it’s competitor on top of LTL. Both seem to be diverging from each other on their strengths and weaknesses a bit, but most shippers will benefit from having contracts with both.
Paul
Paul – you could not be more wrong and are just a lifelong hater.
FedEx is reacting how you SHOULD react to these market conditions. Your remarks are not even accurate or intelligent.
Roger
What was once an outstanding company has devolved into a transportation slumlord.
What built FedEx into a stellar, well-respected operation was that it treated and paid their employees extremely well which resulted in exemplary service to it’s customers.
Those days are over.
Now they are committed to using a 3rd party workforce. Much lower paid people, receiving no benefits, who in turn have zero loyalty or concern for the company’s future. The revolving door will spin at a high rate, constantly resulting in a workforce lacking in experience and dedication.
Approx. 3,000 Express employees were told yesterday that they no longer had jobs. Many of these people had over 25 years with them and were thrown away like garbage. Many more are about to have the same experience.
Unfortunately, the customers will also suffer. I foresee shippers leaving in droves due to the increase in complaints about late and lost shipments. Meanwhile, FedEx will continue to increase their prices. Make no mistake- it’s coming.
It isn’t possible to build great things with cheap parts.
Steve
Dave – what are employees supposed to do if volumes aren’t there to support the extra labor? Sit around and twiddle their thumbs while getting paid?
Dave
On backs of employees.! Sad