The FedEx Corp. stock rose more than 3% in the extended session Thursday after the delivery and logistics company reported quarterly earnings within analyst expectations and said it expects higher profits in the next fiscal year.
FedEx FDX earned $558 million, or $2.13 a share, in the fiscal fourth quarter, compared with $1.9 billion, or $6.88 a share, in the year-ago period.
Analysts said that earnings of $6.88 a share on revenue of $24.5 billion were the basis for the adjusted earnings of $6.88 billion. The FedEx Express business improved partly due to fuel surcharges but volumes softened globally due to the pandemic lockdowns and economic and geopolitical uncertainty, the company said. The FedEx Ground operating results fell. The company said that FedEx Freight's operating results were sharply increased thanks to a 28% increase in revenue per shipment. In fiscal 2023, the company guided for EPS between $22.45 and $24.45 before adjustments related to retirement plans and other initiatives, and capital spending of $6.8 billion. The analysts polled by FactSet predicted that fiscal 2023 EPS would be around $22.21. The company said investments to improve efficiency, including fleet and facility modernization, and increase automation will be the priority. An investor meeting is scheduled for Tuesday by FedEx. So far this year, the FedEx stock has lost 12%, compared to the S&P 500 index SPX's losses of around 20%.