Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

FedEx slides on revenue miss, earnings tops expectations

Published 12/20/2022, 04:19 PM
Updated 12/20/2022, 04:27 PM
© Reuters.  FedEx (FDX) slides on revenue miss, earnings tops expectations
FDX
-

By Sam Boughedda

After a 2.63% fall in the regular session, FedEx (NYSE:FDX) shares have declined in extended trading Tuesday after it reported its fiscal second quarter results, topping earnings but missing revenue consensus expectations.

The transport company posted adjusted earnings of $3.18 per share on revenue of $22.8 billion. Analysts expected earnings of $2.81 per share, with revenue expected to be $23.71B.

FedEx shares are down another 2% at the time of writing.

The company said its results in the quarter were constrained by continued demand weakness, particularly at FedEx Express.

"The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment," stated Raj Subramaniam, FedEx Corp. president and chief executive officer. "Our earnings exceeded our expectations in the second quarter driven by the execution and acceleration of our aggressive cost reduction plans. At the same time, we continue to focus on delivering excellent service for our customers."

Looking ahead, FedEx expects fiscal 2023 earnings per diluted share of between $12.50 and $13.50 before the MTM retirement plans accounting adjustments. In addition, before the MTM retirement plans accounting adjustments and excluding estimated costs related to business optimization initiatives and business realignment activities, FedEx sees earnings per share between $13 to $14.

"As we look to the second half of our fiscal year, we are accelerating our progress on cost actions, helping to offset continued global volume softness," said Michael Lenz, FedEx executive vice president and chief financial officer.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.