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published in Blogs
Sep 23, 2022
FedEx (FDX, $154.49) misses fiscal Q1 earnings expectations

FedEx (FDX, $154.49) misses fiscal Q1 earnings expectations

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.

 

Related Tickers: FDX