FedEx beats by $0.43, misses on revs; narrows FY24 EPS guidance, reaffirms FY24 revenue guidance (264.78 +4.77)
- Reports Q3 (Feb) earnings of $3.86 per share, excluding non-recurring items, $0.43 better than the FactSet Consensus of $3.43; revenues fell 1.9% year/year to $21.74 bln vs the $21.95 bln FactSet Consensus.
- FedEx Express segment revenue fell 2% yr/yr to $10.10 bln.
- FedEx Ground segment revenue grew 1% yr/yr to $8.70 bln.
- FedEx Freight segment revenue fell 3% yr/yr to $2.13 bln.
- Co issues in-line guidance for FY24, sees EPS of $17.25-18.25, before the MTM retirement plans accounting adjustments after also excluding costs related to business optimization initiatives, vs. $17.35 FactSet Consensus, and vs $17.00-18.50 prior guidance.
- Co reaffirms FY24 revenue outlook as a low single digit decline, this compares to the $88.21 bln FactSet Consensus, which is a -2% decline.
- Co authorizes a new $5 bln share repurchase program, in addition to the existing $0.6 bln that remains. Co expects to repurchase an additional $500 mln of common stock during Q4 (May), which will bring the FY24 buyback total to $2.5 bln.
- "FedEx delivered another quarter of improved profitability in what remains a difficult demand environment, reflecting outstanding service and continued benefits from DRIVE," said Raj Subramaniam, FedEx Corp. president and chief executive officer. "We are making meaningful progress on our transformation, while strengthening our value proposition and improving the customer experience."