FedEx 3Q Profit Rises as Cost Cuts Boost Results
By Ben Glickman
FedEx posted higher profit in the fiscal third quarter as cost-cutting offset weaker demand.
The Memphis, Tenn.-based package-shipping company reported a profit of $879 million, or $3.51 a share, in the quarter ended Feb. 29, compared with $771 million, or $3.05 a share, a year earlier. Analysts polled by FactSet expected per-share earnings of $3.27.
Stripping out certain one-time items, adjusted per-share earnings came to $3.86, ahead of the $3.43 forecast by analysts, according to FactSet.
Revenue fell 2.3% to $21.7 billion, missing the $21.95 billion expected by analysts polled by FactSet.
Chief Executive Raj Subramaniam said FedEx's profitability rose despite a weaker demand environment as the company benefited from its cost-cutting initiative.
The company is looking to slash expenses as it moves toward merging its express and ground units. Those units got a boost in the quarter from lower structural costs.
FedEx backed its revenue forecast for fiscal 2024 of a low-single-digit percentage drop. The company now expects per-share earnings of $15.65 to $16.65 for the full fiscal year, compared with prior guidance range of $15.35 to $16.85 a share.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 21, 2024 16:39 ET (20:39 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening in the Markets This Week
-
4 Top Dividend-Paying REIT Stock Picks
-
After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?
-
P-CAPE: A Better Way for Investors to Estimate Future Returns
-
Which Stocks Have Driven the Stealth Large-Value Rally?
-
Forecasts for Q2 GDP Report Show a Healthy but Slowing Economy
-
5 Stocks to Buy as the Market Rally Broadens
-
4 Top US Travel Stock Picks
-
How Do Interest Rates Affect Stock Market Returns?
-
American Airlines Earnings: Ticket Distribution Misstep Affected Results
-
Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
3 Top Cybersecurity Stock Picks for Long-Term Investors
-
AbbVie Earnings: Firm Sees Strong Next-Generation Immunology Drugs Sales
-
Ford Earnings: Warranty Problems on Older Vehicles Slam Results
-
ServiceNow Earnings: Operating on a Higher Plane Within Enterprise Software