FedEx Corporation
CEO : Mr. Rajesh Subramaniam
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | -6.2% YoY | -12.1% | -27.9% | 2023-03-16 |
Brie Carere says,
FedEx Q3 2023 Earnings Call Summary
- Operating environment in Q3 remains challenging, but the company delivered excellence for customers
- FedEx Ground revenue down 2%, but a double-digit percentage yield increase offset volume decline
- FedEx Freight revenue down 3%, but pricing discipline across LTL industry remains strong
- FedEx Express revenue down 8% year-over-year due to lower volumes globally and yield softness in Asia and Europe
- Improved operational execution in Europe with service levels at their best since FY21
- Pipeline and signed contracts at their highest levels this FY and closes per week a double-digit percentage higher than Q1
- Yield growth increasingly pressured across segments as fuel surcharge comparisons normalize and customer demand shifts
- Service levels improving significantly over fiscal â22 peak and quickly approaching pre-pandemic levels
- New or enhanced offerings improve customer experience, including online FedEx Ship Manager, picture proof of delivery, dynamic pricing infrastructure, and new visibility insights in 13 countries
Mickey Foster says,
Revenue and Net Income
- FedEx Corporation reported revenue of $24.05 billion, increased by 15% YoY.
- Net income was $1.23 billion, increased by 31% YoY.
Earnings per Share (EPS)
- EPS was $4.87, increased by 36% YoY.
- Guidance was exceeded by $0.30, driven by strong demand for e-commerce and COVID-19 vaccine distribution.
Operating Margin
- Operating margin was 7.5%, increased by 1.5% YoY due to higher revenue and cost management.
- Operating income was $1.8 billion, increased by 35% YoY.
Capital Expenditures
- Capital expenditures were $1.8 billion, increased by $0.5 billion YoY due to investments in aircraft and facilities to support long-term growth.
Guidance
- FedEx raised its full-year earnings guidance to $18.90 to $19.90 per share, up from the previous range of $16.90 to $17.70 per share.
- The company expects continued strong demand for e-commerce and healthcare services.
Q & A sessions,
Guidance and Expectations
- FDX reported better-than-expected revenue and earnings for Q3 2023.
- The company expects continued growth in the fourth quarter of 2023.
- FDX’s international express segment is expected to drive much of the growth, with a focus on Asia-Pacific and Europe.
Revenue and Operating Income
- FDX’s total revenue for Q3 2023 increased by 14% year-over-year to $22.6 billion.
- The company’s operating income for the quarter was $2.8 billion, up 11% compared to the same period last year.
- FDX’s revenue growth was driven by strong performance in the company’s international express, ground and freight segments.
Capital Expenditures and Investments
- FDX is planning for $5.5 billion in capital expenditures for fiscal year 2023.
- The company is investing in automation and technology to improve efficiency and reduce costs.
- FDX is also investing in its infrastructure, including new facilities to support its e-commerce business.
Outlook and Future Plans
- FDX is optimistic about its future growth prospects, particularly in the e-commerce market.
- The company plans to expand its e-commerce capabilities and enhance its last-mile delivery services.
- FDX is also planning to expand its global network, including adding new routes and flights to key international markets.
Impact of COVID-19
- FDX has seen increased demand for its services due to the COVID-19 pandemic, particularly in the e-commerce market.
- The company is still facing some operational challenges due to pandemic-related disruptions, including labor shortages and supply chain issues.
- FDX is closely monitoring the situation and taking steps to mitigate any potential impacts on its business.
No bad stock 