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FedEx's Q4 earnings exceed expectations, stock surges over 15% after hours

TraderKnows
TraderKnows
06-26

Recently, FedEx announced its fourth-quarter earnings report, revealing revenues that far surpassed Wall Street's predictions, which led to a significant increase in their stock price.

FedEx Corp's stock price surged more than 15% in after-hours trading due to the company's fourth-quarter earnings surpassing Wall Street expectations, along with a robust earnings outlook for fiscal year 2025.

The logistics giant reported an adjusted earnings per share (EPS) of $5.41, exceeding analysts' estimates of $5.34. Quarterly revenue was $22.1 billion, slightly above the expected $22.05 billion and up from $21.9 billion in the same period last year.

The company attributed the strong performance and positive market reaction to its strategic initiatives, which led to modest revenue growth and improvements in operating income and profit margins.

FedEx's DRIVE program, aimed at reducing structural costs, was a key factor in the company's financial success this quarter.

According to FedEx President and CEO Raj Subramaniam, the company has achieved growth in operating income and profit margins for four consecutive quarters, which is a significant accomplishment in a challenging revenue environment.

Looking ahead, FedEx expects fiscal year 2025 EPS to be between $20.00 and $22.00, above analysts' midpoint estimate of $20.85.

The company anticipates annual revenue growth in the low to mid-single digits percentage and $2.2 billion in permanent cost reductions through its DRIVE program.

Subramaniam is confident about the company's future, stating, "We expect this momentum to continue into fiscal year 2025 as we strive to create the most flexible, efficient, and intelligent network in the world."

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