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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

(END) Dow Jones Newswires

March 21, 2024 16:39 ET (20:39 GMT)

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