FedEx posted its first-quarter fiscal 2023 adjusted earnings of $3.44 per share, below the Zacks Consensus Estimate of $3.69, amidst global volume weakness. (as reported in Zacks Equity Research).
For the quarter ending Aug 31, revenues climbed +5.44% from the year-ago quarter to $23,200 million, missing the Zacks Consensus Estimate of $23,213.4 million.
FedEx Express (including TNT Express) revenues were up +1% from the prior-year quarter to $11.13 billion. Package revenues in this business segment rose +2%, while freight revenues were flat. Operating income in the segment plunged -69% year-over-year to $174 million, amidst lower global package and freight volume.
FedEx Ground revenues climbed +6% year over year to $8.16 billion for the period due to increased fuel surcharges, among other factors.
FedEx Freight revenues surged +21% from the year-ago fiscal quarter to $2.72 billion, on the back of higher revenues per shipment.
For the fiscal second quarter, FDX projects revenues in the $23.5-$24 billion range, compared to the Zacks Consensus Estimate of $23.7 billion. The company is expecting earnings per share for the quarter (excluding costs related to business optimization initiatives and business realignment activities) to be $2.75 or higher, lower than the Zacks Consensus Estimate of $4.02.
FedEx expects cost savings of $2.2-$2.7 billion in fiscal 2023. FedEx Express, FedEx Ground and FedEx Home Delivery shipping rates will be hiked by an average of 6.9% starting Jan 2, 2023. It will raise rates at its Freight unit by an average of 6.9-7.9%, depending on a customer’s transportation rate scale.
FDX moved above its 50-day moving average on June 24, 2024 date and that indicates a change from a downward trend to an upward trend. In of 37 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry AirFreightCouriers