March 16, 2023 — FedEx(NYSE:FDX) today reported the following consolidated results for the third quarter ended February 28 (adjusted measures exclude the items listed below for the applicable fiscal year):
Key Quotes:
FedEx(NYSE:FDX) reported fiscal Q3 adjusted net income of $3.41 per diluted share, down from $4.59 a year earlier.
Analysts polled by Capital IQ forecast $2.74.
Revenue for the quarter ended Feb. 28 was $22.2 billion, down from $23.6 billion a year earlier.
Analysts surveyed by Capital IQ projected $22.74 billion.
The delivery company said it now expects fiscal 2023 adjusted EPS of $13.80 to $14.40 before the mark-to-market retirement plans accounting adjustments. It guided at $12.50 to $13.50 previously.
Additionally, the company said it continues to expect fiscal 2023 capital spending of $5.9 billion.
FedEx Express operating results declined due to lower global volumes, partially offset by a 3% increase in revenue per package.
Outlook
FedEx is increasing its earnings forecast for the fiscal year, and now expects:
Earnings per diluted share of $13.80 to $14.40 before the MTM retirement plans accounting adjustments, compared to the prior forecast of $12.50 to $13.50 per diluted share;
Earnings per diluted share of $14.60 to $15.20 before the MTM retirement plans accounting adjustments and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities, compared to the prior forecast of $13.00 to $14.00 per diluted share;
ETR of 25% to 26% prior to the MTM retirement plans accounting adjustments; and Capital spending of $5.9 billion.
“I am proud of the FedEx team, who delivered outstanding service to customers during our peak season while also making solid progress on our transformation initiatives,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “We’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year.”
Third quarter results were negatively affected by continued demand weakness, particularly at FedEx Express.
FedEx Ground operating results improved, primarily due to an 11% increase in revenue per package and cost-reduction actions.
FedEx Express operating results declined due to lower global volumes, partially offset by a 3% increase in revenue per package.