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published in Blogs
Dec 22, 2022
FedEx (FDX, $172.91) will cut $1 billion more in costs, after profit fall

FedEx (FDX, $172.91) will cut $1 billion more in costs, after profit fall

FedEx posted its fiscal second quarter adjusted earnings of $3.18 per share, topping the Street expectations of $2.82. But the decrease in quarterly net income to $788 million (down from $1.04 billion a year earlier) has apparently propelled the transportation services company to cut $1 billion more in costs – vs. its forecast in September, in order to achieve the total fiscal 2023 savings to $3.7 billion compared with its prior plan for the year.

Revenue for the three months ending November was $22.8 billion vs. $23.74 billion expected.

The company’s Express unit ‘s operating income was down -64% year-over-year, while FedEx Ground operating income climbed +24%.  FedEx freight operating income rose +32% year over year.

For the full-year, FedEx has projected earnings per share of between $13 and $14, vs. analysts' expectations of $14.08 per share.

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