FedEx up on Q4 earnings: ‘we expect further momentum in fiscal 2023’
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Jun 23, 2022
The transportation company gave better-than-expected future guidance.
Shares of FedEx Corp are up 3.0% in after-hours trading on Thursday.
FedEx Corporation (NYSE: FDX) reported in-line earnings for its fiscal fourth quarter on Thursday. Shares are up 3.0% in extended trading on better-than-expected guidance for fiscal 2023.
FedEx Q4 earnings snapshot
Net income printed at $558 million versus the year-ago figure of $1.87 billion$2.13 of EPS was significantly below $6.88 in Q4 of the previous yearOn an adjusted basis, per-share earnings stood at $6.87 in the recent quarterRevenue jumped 8.0% to $24.4 billion, as per the earnings press releaseExperts had forecast $6.87 of EPS on a higher $24.49 billion in revenue
Adjusted operating margin climbed from 8.7% to 9.2% on a year-over-year basis. In the earnings press release, CEO Raj Subramaniam said:
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Our fiscal 2022 performance is a testament to FedEx value proposition and execution of our long-term strategy. Our foundational investments have set the stage for a strong fiscal 2023. Our focus will be on revenue quality and lowering cost to serve.
Dividend and future outlook
Last week, the transportation company raised its quarterly cash dividend by more than 50% to $1.15 a share. The stock is down 10% for the year.
For the full financial year, FedEx expects its per-share earnings to fall in the range of $22.50 to $24.50. This compares to $22.21 a share that analysts had forecast. CFO Michael Lenz said:
We expect further momentum in fiscal 2023 and beyond as we execute on our initiatives to drive increased profitability and returns.
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