FedEx Q4 Results Miss Street Consensus, But Outlook Strong

(RTTNews) - Package delivery giant FedEx Corp. (FDX), Thursday reported results for the fourth quarter, with earnings and revenues falling shy of Street estimates. However, the company issued a strong earnings outlook for the full year 2023.

Memphis, Tennessee-based FedEx reported fourth-quarter profit of $558 million or $2.13 per share, compared to last year's profit of $1.87 billion or $6.88 per share.

Adjusted earnings for the quarter were $6.87 per share, compared to last year's $5.01 per share. On average, 24 analysts polled by Thomson Reuters expected earnings of $6.88 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 8% to $24.39 billion from $22.57 billion last year. Wall Street analysts had a consensus estimate of $24.56 billion.

"Our continued emphasis on revenue quality drove significant improvement in our fourth quarter results," said CFO Michael Lenz. "We expect further momentum in fiscal 2023 and beyond as we execute on our initiatives to drive increased profitability and returns."

Looking forward to full year 2023, the company continues to expect adjusted earnings of $22.50 to $24.50 per share. Analysts currently expect earnings of $22.41 per share.

FDX closed Thursday's trading at $228.13, down $0.89 or 0.39%, on the NYSE. The stock, however, gained $6.51 or 2.85% in the after-hours trading.