FedEx posted fourth quarter revenue that topped analysts’ expectations. The package delivery giant also issued a solid earnings outlook.
FedEx’s adjusted earnings increased +37% from the year-ago quarter to $6.87 per share, in line with the $6.88 per share Wall Street consensus estimate. The company mentioned that it passed on rising fuel costs to customers, and its labor costs were lower compared to last year.
Revenues climbed +8.1% from the year-ago quarter to $24.4 billion, compared to analysts' estimates of $24.05 billion.
Looking ahead, FedEx said it expects earnings in the range of $22.45 to $24.45 per share the coming fiscal year ending February of 2023, which would imply an expected annual growth of about 9% to 19% -- a range higher than the Street consensus of just under 9%.
The company expects to repurchase $1.5 billion of its common stock during the first half of fiscal 2023. This would be a higher pace from fiscal 2022 when the company bought back $2.2 billion of its common stock.