On Tuesday, FedEx announced its fiscal fourth quarter financial results, showing a lower revenue amid weaker demand and higher costs.
Its stock price went down by -0.78% to $231.65 per share on June 20. Likewise, it is expected to drop by -3.09% to $224.50 apiece in the upcoming session.
The company’s earnings per share rose to $4.94, beating experts’ $4.86 forecast. Therefore, it is higher than the prior $3.41 data.
On the other hand, the revenue of FedEx dropped to $21.90 billion, still topping the $22.59 billion consensus. However, the latest reading is lower than the previous $22.20 billion figures.
According to the firm, its mixed financial data result from the demand weakness and higher costs they face. Moreover, its operating margin fell by 6.90% from 8.90% in the previous year.
For 2024, it has a guided EPS of $15.00 to $17.00, better than the $14.87 estimates. Its year-over-year revenue growth was guided to a low-single-digit-percent.
Furthermore, it anticipates repurchasing $2.00 billion of stock. In fiscal 2023, their total repurchases were more than nine million shares. It equates to 4.00% of the shares outstanding from the start of the year.
Additionally, FedEx Express operating results dropped further amid weaker global volumes. Also, it continues to implement volume-related and structural cost-cut actions like reducing flight hours. These are efforts to reduce the pressures from the continued demand weakness.
Canadian Personnel to Transition to FedEx Express
Ground operations and personnel in Canada will move to FedEx Express, which was reported on Tuesday.
On April 2024, the transition will take place in stages. As said by a spokesperson, these actions would be made as efforts to lessen redundancies in commercial and residential operations. As a result, it would affect around 200 contractors in Canada.
Moreover, FedEx assesses its networks and adjusts based on customer demand movement for improvements. They want better operational efficiencies and more affordable costs to serve.
Also, they would be working directly with affected staff to determine opportunities in the new FedEx Express Canada organization. Customers can still look forward to the same excellent service that they are used to.
