FedEx stock falls 3% after earnings miss

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FedEx stock falls 3% after earnings miss

FedEx Corp. shares declined in the extended session Thursday after the shipping and logistics company reported an earnings miss against Wall Street estimates and left its outlook unchanged.

After a 0.9% rise in the regular session to close at $227.98, the shares of FedEx FDX declined by 3% after hours.

The company reported third-quarter net income of $1.1 billion, or $4.20 a share, compared to $892 million, or $3.30 a share, in the year-ago period. The adjusted earnings, which exclude stock-based compensation expenses and other items, were $4.59 a share, compared to $3.47 a share in the year-ago period. Revenue rose to $23.6 billion from $21.5 billion in the year-ago quarter. Analysts had predicted $4.65 a share on revenue of $23.41 billion, according to analysts surveyed by FactSet. Michael Lenz, the chief financial officer of FedEx, said that we successfully executed during the holiday peak season, resulting in record December operating income. We focus on revenue quality and operational efficiency initiatives to mitigate inflationary pressures and drive earnings improvement. Excluding year-end mark-to-market accounting adjustments for retirement plans and other charges, FedEx maintained its forecast earnings at $20.50 to $21.50 a share, while analysts estimate earnings of $20.59 a share. The forecast assumed no new COVID 19 related business restrictions, current fuel-price expectations and no adverse geopolitical developments. In December of last year, FedEx announced a $5 billion share buyback program, with $1.5 billion of that under an accelerated program.